auditplanningandchecklist

8/8/2019 AuditPlanningandchecklist

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11/19/2010 CA Atul Kumar Gupta 1

Audit Planning and checklist

Checklist for Service Tax By CA Atul Kumar Gupta


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Assessee Classification

Manufacturer/Trader

Service Provider


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Manufacturer/Trader Assessee

Checklist

Expenditure Head

Payment of Overseas Royalty

Payment to GTA Service Provider Payment in Foreign Agent for Procuring Order or

any other Consultant

Sponsorship of any Nature


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Manufacturer/Trader Assessee

Checklist

Revenue Head

Job Work

After Sale Services/Free Services under Warranty IF exporter of Goods, Eligible for Refund

Reimbursement/Cost Sharing from Sister

Companies.


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Service Provider Assessee

Checklist

Revenue Head

Classification of Services

Taxable Vs. Exempted Services Abatement Claimed or not

Timely Submission of Challan and Return-Penalty

Provisions

Whether Services are Really Export or not FIRC in case ofExport

Bad Debts Accounted or not in ST-3


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Checklist

Revenue Head

Matching of Turnover with ST-3 (H1+H2)

Matching of C

ENVAT Credit in H2 Service TaxReturn with Balance Sheet Balances

Maintenance of Records and Heads in Books of

Accounts

Out of Pocket Expenses Claimed. In Export-Whether Refund Applied or Not.


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Checklist

Revenue Head

Issue of Invoices-Rule 4A

Centralized Registration/Single Premises Whether all the Services covered under

Registration Certificate


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Checklist

Expenditure Head

Rule 4A of Service Tax Rules 1994.

Import of Services Payment of Tax under Reverse Charge

Mechanism


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Checklist

Expenditure Head

CENVAT Credit Rules Compliances for CENVAT

Credit Under Rule 4 and 6

Register of CENVAT Credit

Declaration under Rule 6(3A) of CCR 2004

Centralized Registration/Single Premises


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Audit UnderService Tax

Turnover Periodicity of Audit

Service Tax Liability more

than 50 Lakhs

Annually

Service Tax Liability Between25- 50 Lakhs

Bi Annually

Service Tax Liability Between

10- 25 Lakhs

Once in a Five Years

Service Tax liability less than

10 Lakhs

2% of the total cases


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How to get prepared for Audit

Gross Turnover 2000000 Match with Balance Sheet

Less: Exempted Turnover 400000 Prepare Note for the same

Net Taxable Turnover 1600000

Add: Opening Debtors 200000 Last Year B/s

Less: Closing Debtors 150000 Current Year B/s

Net realised taxable amount 1650000 Match with ST-3


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How to get prepared for Audit

Tax Due @10% 165000

Less: Cenvat Credit 20000 Documentary

Evidencerequired.

Net Tax Paid in Cash 145000 Match with GAR-

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