Audit by Accountant General (C & R A )
Rishi Singh
(Querist) 03 February 2011
This query is : Resolved
We are a STP unit under the Software Technology Park Scheme of the Government of India. We do not manufacture any excisable goods but are service providers and are registered as per Service Tax Rules. Our records are audited by our internal and statutory auditors as well as by the Audit Group team from the O/o The Commissioner Central Excise, Noida having jurisdiction over our unit/area. We have recently received a letter from The O/o The Accountant General (C & R A), Lucknow (U.P.) that an audit of Central Excise receipts and refunds of our unit is to be conducted. Our query is : Are we liable to be audited by A.G (C & R A ) office. If so under what rule/section. If not how can we refuse/avoid the audit.
H.M.Patnaik
(Expert) 05 February 2011
The Audit conducted by A.G.( C & R.A.) seeks to examine whether in respect of the transactions undertaken by your Organisation which are exigible to Service
tax , there is any revenue leakage or not.This audit programme has arisen in course of audit of accounts of the jurisdictional Service Tax authority. Hence, you can not refuse production of records before audit since this is taken up
in the interest of national revenue.
Rishi Singh
(Querist) 09 February 2011
Thank you very much Mr. Patnaik for the valuable information. During my search I also happended to see Rule 5A(2) of Service Tax Rules and it also says so. Thank you once again. Best regards, Rishi Singh
