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Audit under service tax

yashsr (CA) (2285 Points)

22 October 2012

Hello,

Is there a particular turnover above which Service Tax records have to be audited by a Chartered Accountant? Just like in Income Tax Act audit u/s 44AB is required when Turnover crosses Rs.1 crore(Rs.25 lacs for Professionals) and in Maharashtra VAT audit, audit is required when Turnover crosses Rs.60 lacs?

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10 Replies

Manjunatha M K (Manager - Accounts) (318 Points)
Replied 22 October 2012

There is no such provision for audit in Service Tax Laws

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 22 October 2012

i. Taxpayers with Service Tax payment above Rs.3 crores (Cash + CENVAT)

(MANDATORY UNITS) – to be audited every year.

ii. Taxpayers with Service Tax payment between Rs.1 crore and Rs.3 crores (Cash

+ CENVAT) – to be audited once every two years.

iii. Taxpayers with Service Tax payment between Rs.25 lakhs and Rs.1 crore

(Cash + CENVAT) – to be audited once every five years.

iv. Taxpayers with Service Tax payment upto Rs.25 lakhs (Cash + CENVAT) – 2%

of taxpayers to be audited every year

3 Like

Manjunatha M K (Manager - Accounts) (318 Points)
Replied 22 October 2012

Originally posted by : CA AYUSH AGRAWAL
	i. Taxpayers with Service Tax payment above Rs.3 crores (Cash + CENVAT) (MANDATORY UNITS) – to be audited every year. ii. Taxpayers with Service Tax payment between Rs.1 crore and Rs.3 crores (Cash + CENVAT) – to be audited once every two years. iii. Taxpayers with Service Tax payment between Rs.25 lakhs and Rs.1 crore (Cash + CENVAT) – to be audited once every five years. iv. Taxpayers with Service Tax payment upto Rs.25 lakhs (Cash + CENVAT) – 2% of taxpayers to be audited every year

This audit is not conducted by CA, it is conducted by Service Tax Audit Cell (A Team of Officers)

CA AYUSH AGRAWAL (Kolkata-Pune-Mumbai) (26986 Points)
Replied 22 October 2012

Originally posted by : Manjunatha M K
	Originally posted by : CA AYUSH AGRAWAL i. Taxpayers with Service Tax payment above Rs.3 crores (Cash + CENVAT) (MANDATORY UNITS) – to be audited every year. ii. Taxpayers with Service Tax payment between Rs.1 crore and Rs.3 crores (Cash + CENVAT) – to be audited once every two years. iii. Taxpayers with Service Tax payment between Rs.25 lakhs and Rs.1 crore (Cash + CENVAT) – to be audited once every five years. iv. Taxpayers with Service Tax payment upto Rs.25 lakhs (Cash + CENVAT) – 2% of taxpayers to be audited every year This audit is not conducted by CA, it is conducted by Service Tax Audit Cell (A Team of Officers)

Yes, Its Not Condusted by CA's.

But by Service Tax Department Only.

But Just for Turnover Benchmark I Have Shared Here.

CA CS Akashdeep Singh (Practicing CA) (1394 Points)
Replied 22 October 2012

There is a provision of service tax audit, which is done by CA Firms on empanelment basis on th behalf of service tax department. Service Tax dept. is responsible for doing this audit.

But there is no provision under service tax, by which service provider require to get their accounts audited from Chartered Accountant.

3 Like