A firm has received service tax final audit report from the department and the audit objections state that there is some amount of service tax which is short paid, does it constitute a SCN?
What is the proper procedure for follow up after receipt of audit report?
Does it constitute an SCN?
Based on the information provided, if you agree with the department findings you can pay the difference amounts of tax and file a reply within the stipulated period enclosing copy of the challans for payment.
If you don't agree with any thing that is mentioned you can reply with reasons on why the same is not acceptable.
Until we can see the copy of the Audit report, will not be able to clarify.
An Audit note is issued by the department to make you aware of the flaws and correct your mistakes and if you find it appropriate and pay the service tax dues along with interest without waiting for issue of SCN, you can avoid payment of penalty under Section 76,77 and 78 of the Finance Act 1994. But in case, if you find it the point mentioned in the audit note is not appropriate you can wait for issue of SCN and put up your written submission and fight upto Supreme Court for obtaining justice.
O P Bagla & Co LLP
New Delhi
CA Inter
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Boutique Investment Bank & Transaction Advisory Firm
Gurgaon
CA
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