Service Tax – list of records (in duplicate)
By Notification No 45/2007 dated 28.12.2007, among other things, a provision was made that the assessees should, while filing the first return or by 31.01.2008, whichever is later, submit a list in duplicate of all the records maintained by the assessee. I received at least a hundred calls, including from our own accounts department and from some of the top business houses, wanting to know what this is all about. (Please see – 01.01.2008)
The Board has informed the field that these amendments have been made in the service tax rules to enable the duly authorised offices to carry out audit or scrutiny as may be necessary to safeguard the interest of revenue. However, it may be ensured that only such records are demanded which are necessary for conducting such audit scrutiny or verification.
The list is to be furnished in duplicate. What does the Superintendent do with two copies of the list? Now it has been clarified. The Superintendent is supposed to send one copy to the Audit section.
A new rule 5A has also been incorporated in the Rules to prescribe that an officer authorised by the Commissioner shall have access to any premises registered under the Service Tax Rules for the purpose of carrying out any scrutiny, verification and checks as may be necessary to safeguard the interest of revenue and that the assessee shall provide, on demand, the specified records including trial balance or the equivalent.
Board clarifies that this rule does not envisage issue of any notification by a Commissioner for such authorisation of officers. The requirement of authorisation could be fulfilled by issue of an office order. How will the assessee know that the officer wanting to have access to the premises is authorised by the Commissioner? Can he ask for the authorisation?
Board also directs that
1. The audit team or any other officer authorised by the commissioner to visit the registered premises of an assessee shall give prior intimation to the assessee along with the list of documents that he requires for the purposes of scrutiny, verification or audit.
2. The taxpayer shall provide the records as required by the authorised officer within a period of fifteen days from the date of request.
3. In case, the taxpayer is unable to produce any of the records called for within the stipulated time, he shall intimate the same along with reasons for non-production of records, and the officer may also grant further time for production of such records keeping in view the overall facts into account.
Keeping in tune with the Board's recent habit of hiding important instructions from public view, these instructions are also not made public. The babu should know that he is a servant of the citizen and he has no duty to suppress vital information from his master.
What prevents you from making your solemn pronouncements public?
Board's F. No. F.No . Dated : January 1, 2008