Service Tax Audit
Service Tax Audit in India – An Overview
Service Tax Audit is a critical compliance requirement for businesses in India that were liable to pay service tax under the Finance Act, 1994, before the implementation of the Goods and Services Tax (GST). Although GST has replaced service tax since July 1, 2017, the need for service tax audits remains relevant for the periods prior to this transition.
A service tax audit ensures that taxpayers have correctly calculated, paid, and reported their service tax liabilities. The audit process involves a thorough examination of the records, returns, and financial statements of the taxpayer by the tax authorities.
Who Needs a Service Tax Audit ?
Service tax audits are generally applicable to:
Even after the advent of GST, businesses may still be required to undergo a service tax audit for the periods when service tax was applicable.
Objectives of Service Tax Audit
The primary objectives of a service tax audit are: