Audit Reports
Indirect Tax
Report No. 29 of 2010 - Compliance Audit on Indirect Taxes – Service Tax Union Government, Department of Revenue
Overview
This Report contains 44 paragraphs with a revenue implication of Rs.70.38 crore. We had issued another 150 paragraphs involving money value of Rs.91.80 crore to the department/Ministry on which rectiflcatory action was taken in the form of issuing of show cause notices, adjudicating of show cause notices and recovery of Rs.31.71 crore.
In the last five years (including this year's Report), we had included 715 audit paragraphs involving Rs.1,159.94 crore. Of these, the Government had accepted audit observations in 597 audit paragraphs involving Rs.599.55 crore and had recovered Rs.217.53 crore.Service tax totalling Rs.50.36 crore was not paid by the registered service providers, recipient of services and unregistered service providers.
Service tax totalling Rs.11.80 crore was short paid due to incorrect self assessment, suppression of value of service etc.Instances of utilisation of cenvat credit for payment of tax on input services, premature availing of cenvat credit of input services, non-maintenance of separate account for common input services used in taxable/exempted services, availing of credit on ineligible services, availing of credit on invalid documents or excess availing of credit were noticed in audit. Service tax involved in these cases was Rs.7.89 crore.Cases of non-payment of interest on delayed payment of service tax involving money value of Rs.32.88 lakh were noticed in audit.