hii
What if a company has managed to pay less % of custom duty to the custom,..ie instead of 5% it paid only 1%.
Should this be reflected as a audit qualification or audit notes..???
Please clarify me.
Thank You
YASH MEHTA (article) (114 Points)
25 April 2013hii
What if a company has managed to pay less % of custom duty to the custom,..ie instead of 5% it paid only 1%.
Should this be reflected as a audit qualification or audit notes..???
Please clarify me.
Thank You
Milind M. Kulkarni
(Practicing CA)
(580 Points)
Replied 25 April 2013
Please get clarity on reason for non (short) payment of customs duty and the stand the company has taken on this issue (whether they accept the liability or do not accept). Also check if they have taken any legal opinion based on which, they make short payments or under any DGFT scheme whereunder they are allowed to take benefits of lower duty rate.
If this is not the case, inform them categorically to make payment along with interest and penalty. If they do not accept this, they must make provision for liability. If they refuse to do this also, a qualification in auditor's report along with report in CARO for non payment of statutory dues is necessary. However, it will be more advisable not to accept such fraudulent client.
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