Today we will discuss the important topic Service tax Audit by departments. In this blog we will share the step by step process how the audit is conducted. what is the timeline for coducting the service tax audit. For how much period service audit is conducted.
Intimation of conducting service tax audit
Service tax department will send you the notice As per rule 5A of the service tax rules 1994 read with section 174(2)(e) of the CGST act 2017, for conducting the audit at your premises.
Reply of the Service tax Notice
Assessee should reply the notice with in the timeline mentioned in the notice. In this it should give the following documents
1 Copy of registration ST-2
2 Financial with tax audit report
3 Copy of service tax return (ST_3)
4 Reply of Questionnaire given by the department
5 Reconciliation of service tax return with balance sheet
6 Cenvat credit register
7 Reverse charge calculation
Preliminary visit by the Department
After giving the documents department will visit for the 1 day and give you the documents list
Department visit for the 5 to 25 days
After preliminary visit department will visit in the office for some days as per the volume. Note name of the person who will visit to your office is mentioned in the notice
Service tax Draft Audit Report
Department will prepare the draft audit report after discussion with the client.
Reply of Service tax Draft Audit Report
After receiving the Service tax Draft Audit Report, client has to give the answer on each point
Show cause notice by the department
After receiving reply from the clients department will assess the liability and give you the show cause notice that why the penalty and interest will not levied on you.
Reply to Show cause notice
After getting the show cause notice pay the dues amount and submit the challan.
