9911796707
TMI BlogRevision of thresholds for frequency of auditX X X X Extracts X X X X X X X X Extracts X X X X ..... entral Excise and Service Tax assessees, currently prescribed in the respective Audit Manuals, is a under: For Central Excise: S.No. Quantum of annual duty payment in cash Frequency of audit 1. Units paying more than Rs. 1 crore Every year 2. Units paying between Rs. 10 lakhs and Rs. 1 crore Once in two years 3. Units paying below Rs. 10 lakhs Once in five years Besides, all Export O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n each Commissionerate should be selected for audit each year, as an interim measure. 2. Owing to the fact that payment of duty through CENVAT credit is quite substantial in many industries, a more representative selection can be achieved in Central Excise by using the total duty payment (i.e. cash and CENVAT credit taken together) as the basis for selection. A view was also ex pressed that the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ategories mentioned at S. Nos. 2 to 4 of the table above, the selection of units would continue to be based on the unit-wise rupee risk calculations circulated by DC (Audit) combined with local risk parameters, if any. 4. In respect of EOUs the Board has decided that about 500 EOUs should be audited mandatorily all over the country. It has also been decided that the selection of these units shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th a higher value of inputs/capital goods received in a year should be given priority over an EOU having a lower value. EOUs manufacturing non-excisable goods (such as primary produce or software) need not be audited mandatorily. However, the order of selection obtained by this method may be circumvented in case it is felt that there are overarching local risk factors (such as past compliance hist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 2 to 4 the selection of assessees would be based on Si parameter and local risk parameters mentioned in the Service Tax Audit manual. 6. The revised frequency norms may be implemented with immediate effect. However, units that have already been audited during the first quarter of this financial year need not be audited again even if they are due as per there revised norms. Any difficulties e ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
