Sales Tax Instructions

Sales Tax Instructions, 2009
-- Surprise audit.
-- Investigation in fraud cases.
-- Advisory Visit.
-- Visit on registration, Voluntary Registration or De-registration, etc.
-- Inspection to see whether the records and accounts are being properly
maintained or not.
-- Verification of refund claim.
17. What will the officers do on a visit?
During a visit an officer would.
-- discuss with you various aspects of your business.
-- examine your business records and activities.
-- discuss any sales tax problem.
-- point out any errors found and explain how to put them right.
The officers would be mostly busy in checking your records and accounts to
ensure whether sales tax due to the Government has been accounted for
properly or not.
18. What records and accounts would the visiting officer demand from me?
The visiting sales tax officers or the audit officers may demand some or, if required, all of
your normal business records from you which include:-
-- sale and purchase invoices.
-- sale and purchase register.
-- bookkeeping records.
-- records relating to utilities
-- You must also give the officer any other information or record or
document that he asks for about imports and supplies of goods you have
made or received.
19. Would the visiting Sales Tax Officers also be removing some of the
records?
Yes, if they require them. The officers may take copies of the documents, make extracts
from them or remove them at a reasonable time and for a reasonable period. They will
provide you with a receipt for any documents removed and will provide copies of any
document you require for the running of your business.
20. How many days would be normally taken to complete the audit?
They would not be taking very long; however, it mostly depends upon how big your
organization is, how complex your accounts are, how reliable you have been in the past,
and how co-operative you are during the visit.
21. Will I get a copy of the officer‘s report?
You are entitled to receive a copy of the relevant extracts of the report if it is used for
some assessment against you. You would be likely to get it in some days after the visit.
22. What happens if the officers discover that I have underpaid?
If the officer discovers that you have underpaid the tax or you have over-claimed the
input tax or sales tax refund, etc., you would be a given a show cause notice by the
Assistant Collector or the authority concerned wherein you would be afforded an
opportunity of being heard and then only your case would be adjudged. You can find
more about it in our leaflet, titled ―Penalties and Appeals‖.
23. Why are some taxpayers visited more than the others?