Manual Scrutiny of Service Tax return wef 01.08.2015 guidelines by CBEC

  • In order keep an eye on small assessees, who usually don’t fall in the ambit of service tax audits, CBEC has issued circular 185/4/2015- ST wherein check-list & revised guidelines for carrying out detailed manual scrutiny of service tax returns have been prescribed.
  • Highlights of the manual has been produced here under:
    1. To be made effective from 1st Aug’15 onwards;
    2. Focus on small assessees whose total tax paid(Cash + CENVAT) during FY 14-15 is less than INR 50 Lacs, though on the direction of Chief Commissioner, scrutiny of returns can be made for assessee whose monetary limit exceeds even INR 50 Lacs but in no case such assessee can be subjected to both Audit & manual scrutiny;
    3. Preliminary online scrutiny to be done by range officers;
    4. Before the return scrutiny is initiated assessee is to be intimated prior to 15 days in the prescribed format.
    5. Return scrutiny must be done for a complete financial year by looking at two half-yearly returns in conjunction.
    6. Reconciliation of ST-3 with ITR returns & Form 26AS and Sales Tax returns etc.
    7. Scrutiny process of an assessee should be completed within 3 months.

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