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EA 2000 Audit

Ravi Mathur (Service) (130 Points)

26 March 2009

Dear Sir

I got a notice from Excise comissioner in mnth of Aug08 & Reminder in Oct & Jan & Feb relevently to audit the manufacturing unit under EA2000 audit . but due to some reason , we are not able to do so. I want to know what action now they will take if we are not able to submit the profile before the March09 . which type of action they will take.

thanking you

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5 Replies

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 27 March 2009

Normally unit want to avoid audit, most of time without any reason.Give the information to the department. Invite them to aidut your records. If there is any short payment of duty, pay it promptly. If they raise any frivolous objection, contest it.

Normally people fear audit for harassment. I will tell you a "trick" to avoid harassment in all checks;

-Give all documents to the officers, whatever you have. After giving all the documents etc,, and a room for them to sit- leave that room for auditor to audit in peace. Never request them to finish audit soon. Let them take their time. Preapare a list of documents submitted to audit, and get it signed by the auditors.

-Refuse to answer any questoin at the time of audit or in a hurry. Say that they can check the records fully and raise objection- the unit can reply only after checking the facts and consulting their consultants.

Just try it once, you will see the difference.

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HS Negi (Senior Executive- F&A) (590 Points)
Replied 28 March 2009

Sir,

Well said.

Regards

Harendra S. Negi

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 29 March 2009

I have seen that the auditor harass units at the time of audit by asking irrelevant questions. Unfortunately, the persons available in the unit may not be qualified enough to answer on the spot. This way they create fear, which is often exploited for corruption. They ask irrelevant papers.

That why I advice my clients to refuse to answer any question during audit. Let them complete the audit, after audit we will answer all the queries after consulting our advisors. Further, when auditors ask for any paper, we provide them and get that paper included in the list of papers audited.

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