CHARTERED ACCOUNTANT
1190 Points
Joined October 2012
There is no turnover limit for conducting Servie tax audit & can only be conducted under 72A of Finance Act. Audit can be ordered by commissioner where he has reason to believe that assessee has to failed to pay tax correctly, wrongly utilized cenvat credit, involve in fraud, collusion etc. , multipilicity of transactions.........
It is also emanated in decision of Del. High court in case of Travelite India vs Union of India the following observation
The only provision in Chapter V of the Finance Act on scrutiny and audit of records of the assessee is Section 72A of the Finance Act, 1994............”
“Section 72A envisages an audit of an assessee’s records only in special circumstances,namely, when there is a failure to declare or compute the value of the taxable service, when the utilization of CENVAT credit in excessive of the limit permissible or by fraud etc., and when the business operations of the assessee are dispersed across multiple locations.....”
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