As per Section 66 of CGST Act, Assistant Commissioner after taking approval of the Commissioner can direct the Registered Persons (GST-ADT 03) to get his records including books of account examined and audited by a chartered accountant or a cost accountant as may be nominated by the Commissioner.
Special Audit can be directed if at any stage of scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rank of Assistant Commissioner, having regard to the nature and complexity of the case and the interest of revenue, is of the opinion
that the value has not been correctly declared or the credit availed is not within the normal limits.
The Chartered accountant or cost accountant so nominated shall, within the period of ninety days, submit a report of such audit duly signed and certified by him to the said Assistant Commissioner mentioning therein such other particulars as may be specified. (Further, extendable by another 90 days by the Assistant Commissioner)
Here question is whether CA or CMA who does not hold Certificate of Practice can conduct special audit under Section 66.
The Terms Chartered Accountant and CMA has been defined in Section 2(23) and Section 2(35) of CGST Act respectively.
As per Section 2(23) of CGST act, Chartered Accountant means a Chartered Accountant as defined in Section 2(1)(b) of The Chartered Accountants Act, 1949.
As per Section 2(1)(b), “chartered accountant” means a person who is a member of the Institute.
Therefore, as far as GST Act is concerned, there is no requirement of Certificate of Practice unlike Income Tax Act (where holding COP is mandatory for audit works) for conduct of Special Audit.
However, since Special Auditor needs to provide report duly signed and certified, as per CA Regulations, he may not be allowed to carry out the same without holding Certificate of Practice.
Can Special Audit be conducted in case where Audit under Section 65 has already been conducted
Yes as per law, special audit can be ordered even if Audit under Section 65 has already been conducted by the Department.
Based on Special Audit, Procedure to Proceed against the Registered Person
Before, Proceeding against the Taxpayer based on Special Audit Report, an opportunity of being heard must be given to the Taxpayer. In this regard, findings of the Special Audit Report will be communicated to the Taxpayer in the Form GSTR-ADT 04.
Who Will bear the Fee of Special Audit
As per Section 66, Remuneration including expenses involved in audit shall be determined and paid by the Commissioner and such determination shall be final.
Happy Reading !!! Happy Learning !!!
Please connect with us @Linkedinfor regular updates.
Disclaimer: We have taken due care to the best of our knowledge while explaining the provisions surrounding the issue purely for informational/academic purpose. It should not be considered as professional advice or consultancy to be relied upon. Further, Fab Gyan and its Team will not be responsible for any mistake.
Comments