Page 109 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Indirect Tax Laws

Notes 6.10 Audit and Inspections

Directorate of Service Tax conducts inspections of Service Tax work in Central Excise
Commissionerates all over the country. Inspections in the past have prompted the
Commissionerates to streamline the service tax administration system and to conduct surveys
to register all prospective assessees under the tax net. Commissionerates have also been directed
to conduct the internal audit of assessees’ records as per the instructions of the Board. This audit
drive has resulted in the augmentation of revenue. Similarly, CERA has brought on record
many instances where assessees were either suppressing the value of taxable service or not
getting registered under the tax net.
A few Commissionerates have taken up this work seriously and shown commendable results.
Some Commission rates have certainly lagged behind in the field of survey work. Still many of
them remain major service tax earning Commissionerates. Survey efforts are adversely affected
due to non-deployment of adequate manpower and other resources such as vehicles, etc. it is
necessary that all available resources and efforts are mobilized by the field formations to register
all assessees for optimum service tax realization.

The service tax is envisaged to be administered on self-assessment basis. Legal provisions for
facilitating such self-assessment have been made in the Finance Act, 2001. This underlines the
need for strengthening the audit mechanism to prevent tax evasion/avoidance.

Self Assessment

Fill in the blanks:
11. Directorate of Service Tax conducts inspections of Service Tax work in ................................
Excise Commissionerates all over the country.

12. Inspections in the past have prompted the ................................ to streamline the service tax
administration system and to conduct surveys to register all prospective assessees under
the tax net.
13. A few Commissionerates have taken up this work seriously and shown ................................
results.

14. ................................ provisions for facilitating such self-assessment have been made in the
Finance Act, 2001.
15. The ................................ drive has resulted in the augmentation of revenue.

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Case Study Calculating your income tax

Case studies on how to calculate your tax in 2012.
These examples show the different factors involved in calculating your tax in 2012.
Tax Credits
Joan is single and earns €28,000 a year. She receives her notice of determination of tax
credits and standard rate cut-off point from Revenue.

Contd....

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