Dear Valued Client,
NOTIFICATION NO: S.R.O. 1338(I)/2020
DATE OF ISSUANCE: 16th December, 2020
EFFECTIVE FROM: From date to be notified
AMENDMENTS MADE IN: Sales Tax Rules, 2006
Through this SRO, after chapter VIA in the Sales Tax Rules, 2002, new chapter VIB namely “Procedure for E-Audit” shall be inserted whereby procedure for conducting of e-audit proceedings under sub-section (2A) of section 25 of the Sales Tax Act, 1990 have been prescribed.
- Proposed chapter VIB of Sales Tax Rules, 2002 consists of Rules No. 44AA to 44AC. In Rule 44AB, definitions of Adjudicating Officer, Audit Officer, Competent Authority, e-audit and IRIS have been given.
- “e-audit” has been defined as the audit proceedings of registered person conducted through electronic means including video links, or any other facility as may be specified by the Board from time to time.
- In Rule 44AC, procedure for e-audit has been defined. Under these procedures, the Commissioner shall serve a notice under sub-section (1) of section 25 of the Act to the registered person specifying the reasons for selection of his case for audit and case will be assigned to Audit Officer to conduct e-audit.
- Physical appearance either personally or through authorized representative is not required in connection with e-audit proceedings. However, registered person can request for an opportunity of personal hearing through IRIS and such hearings shall be conducted, exclusively through video links from personal computer system or any of the nearest Tax Facilitation Centre situated at the premises of field formations.
- The Audit proceedings will be closed in IRIS if the Audit Officer finds no discrepancy and have no conclusive proof against registered person.
- If the Audit Officer does not agree with the declared version, he shall prepare an audit report, containing audit observations and finding. The Audit Officer shall forward the report to the Commissioner Inland Revenue having jurisdiction and also send a copy of it to the registered person through IRIS.
- The CIR having jurisdiction shall assign the case to an Adjudicating Officer to make an order for assessment of tax and on the basis of the audit report, the Adjudicating Officer shall issue a show cause notice through IRIS to the registered person.
- The Adjudicating Officer may, if considered necessary, after obtaining the registered person’s explanation on all the issues raised in the audit report, pass an order under section 11 of the Act.
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