04/20/23 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 of Export Bad Debts Accounted or not in ST-3

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Service Provider Assessee Checklist

Revenue Head Matching of Turnover with ST-3 (H1+H2) Matching of CENVAT Credit in H2 Service Tax

Return 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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Service Provider Assessee Checklist

Revenue Head Issue of Invoices-Rule 4A Centralized Registration/Single Premises Whether all the Services covered under

Registration Certificate

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Service Provider Assessee Checklist

Expenditure Head Rule 4A of Service Tax Rules 1994. Import of Services Payment of Tax under Reverse Charge

Mechanism

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Service Provider Assessee 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 Under Service Tax

Turnover Periodicity of Audit

Service Tax Liability more than 50 Lakhs

Annually

Service Tax Liability Between 25- 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 AuditGross 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 Evidence required.

Net Tax Paid in Cash 145000 Match with GAR-7