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How service tax auditors audit using caat tools

Sunil (Internal Auditor) (334 Points)

25 September 2012

Any one know how service tax auditors audit using CAAT tools in a Tally using environment

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CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 25 September 2012

AUDIT PROGRAM UNDER FINANCE ACT 1994, SERVICE TAX

CO. PVT. LTD, OFFICE

Team Members

Sl.No.	ISSUE	Verification of document	CHECK	REMARKS
1.	Verify the Registration of the assessee with the Service Tax Commissionerate
2.	Whether separate regn. Taken for each service provided
3.	Make a brief note on the taxable service provided as told by the assessee.
4.	Check the opening credit of the current year and closing entries of the previous year
5.	Take samples of the bills raised for collecting the service tax. Check whether the tax invoice is proper and mentions the Regn. No. of the assessee, Separately mentions the rate of tax and amount of tax.
6	Take samples of the bills received by the assessee from service providers. Check whether the tax invoice is proper and mentions the Regn. No. of the service provider and Separately mentions the rate of tax and amount of tax.
7.	If the rates applied are different, take a copy of the authority/notification under which such change is approved. Ex. Composition, Notification, etc.
8.	Trace these samples to the entries in the ledger extract of the relevant account Receivable/payable.
9.	Take month wise statement of service tax receivable/payable account and tally it with monthly payments of service tax.
10.	Make an annexure noting the date of monthly service tax payments to the Dept. whether properly acknowledged
11.	Take a copy of the Half Yearly returns filed. Tally it with both the monthly payments and as well as the ledger entries as the relevant dates.
12.	Review the return and see whether the return is accurate as to, input credit, output tax payable, valuation of services, carry forward of credit, etc.
13.	Check the Correspondence if any with the Department and its compliance and impact.
14.	Tax Planning under VAT Awareness Actions taken and their effect
15.	Tax payments in the State of Jammu & Kashmir.
16.	Other aspects if any relevant for the Audit.

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CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 25 September 2012

Important File

Sunil (Internal Auditor) (334 Points)
Replied 25 September 2012

Thanks ayush

But the aim of my question is to know the methods they use while audit. That is whether they will use the computer system of the assessee for audit and will they use the data file of the assessee for examination. Also please clarify the nature of software they are using like whether they directly run the software in the assessees computer system or not