Chapter XIII AUDIT

"(1') (2) (3) ,' (4) 80 CHAPTER XIII AUDIT The Commissioner or any oflicer authorisedby him, bywayofagengaloraspeaficorder mayundertake audit of any registered person for such period. at such frequencyandinsuchmannerasmaybeprescribed. TheofliCcrs referred to insub-section (1) may conduct audit atthe place of business of the registered persoii'or intheir office. Theregistcredpersonshaflbeinfomedhywayofanofice notless thanfifteen working daysprior tothe conduct of ~ auditinsuchmannerasmaybeprescribed. ' “The audit under sub-section (1) shallbe completed within a period ofthree months from the date of continencernent ofthe audit: Provrded thatwhere theCommissioner issatisfied that audit in respect of such registered person cannot be completed within three months, he may, forthe remnstobe recorded in writing, extend the period by a further period not exceeding six months. Expldndfiom— For the purposes ofthis sub-section, the expression j “commencement of audit” shallmean the dateonwhich the records and other documents, called for by the tax authorities, aremade available by the registered person orthe actualinstitution of auditat the place of business whichever' 15 later. (5) (6) (7) During the course of audit, theauthorised officer may require the registered-person;- (i) to afi'ord him the necessary facility to verify the books of accountor otherdocuments as he may require; (ii) tofurnish suchinformation ashe mayrequire andrenderassistance for timelycompletion of the audit. 0n conclusion of audit, the proper oficer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations andthereasons forsuch findings. Where theauditconducted under sub-section (1) results in detection of tax not paid orshort paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper oflicer may initiateaction under section 73or section

(1) Ifat anystage of. scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rankofAssistant Commissioner, having regard to the natureand complexitycf thecaseandtheinterest of revenue, is of the opinion thatthe value has not been correctly declared or thecreditavailed is notwithin the normal limits, he may, with the priorapproval of the Commissioner, directsuch registeredpersonby a communication in writing to get hisrecords including books of account examinedand audited by achartered accountant oracost accountant as may benominated by ‘ the Commissioner: . (2) The charteredaccountant or costaccountant . so nominated shall, within the period of ninety days, submit a report of suchaudit duly signed andcertified by himto the saidAssistantCommissioner mentioning «thereinsuchother particulars as may be Specified: Provided that theAssistant Commissioner may, on an application made tohiminthisbehalf by the registered person or thechartered accountant or cost accountant or for any material and sufficient reason, extend thesaid period by a further period of ninety days. (3) The provisions of sub-section (1) shall have effect notwithstanding that theaccounts ofthe registered person havebeen auditedunder any other provisions of this Act or any other lawforthe time being in force. (4) The registeredperson shallbe given an opportunity of being heardin respect of any material gathered on the basisof special audit undersub—section (1) whichis proposed to be usedin any proceedings against him .under this Act ortherules made thereunder. (5) The expenses oftheexaminationand auditofrecords under subsection (1), including the remuneration of such charteredaccountant or cost accountant. shallbe determined and paidby the Commissioner and such determinationshall be final. . (6)- Wherethe special auditconductedunder sub-section (1) resultsindetection of tax not paid orshort paid or erroneously refunded, or input tax credit wrongly availedor utilised, the proper officer may initiateaction undersection 73orsection