Service Tax Audit - Cart Before Horse - Board Clarifies

ab kya board ye kehna chahta hai ki

6 august 2014 ke pehle ke kiye gaye sare audit ki koi statutory backing nahi thi.

ya ki section 94 (2) k me kisi bhi tarah ka bebuniyad rule banaya ja sakta hai.

ya ki verification ka matlab audit hota hai goya ki 25 paisa is equal to 1 rupee.

94 section me rule records aur details ko verify karne ke hai audit ke nahi.

audit is avery wide and substantive term it enterelia involves 5- 6 process of vouching, cross checking, scrutiny, verification, documentation reporting etc. hence verification is merely a part and process of audit and the not audit itself. it is like calling superintendent a sipahi.

if board is giving value to the decision of delhi high court then why it is not also giving value to the finding that audit related provision can be brought in existaece only through specific section and not rule.
rule is there to do the verification and not for conducting audit which is more comprehensive process in itself.
it has very rightly held that rule 5A IS INVALID. amending the invalid rule is a futile exercise.

this circular is going to be challanged soon undoubtedly.

it is as simple as that .

Navin Khandelwal 11/12/2014