Introduction
A Special Audit is a kind of audit where a registered person can be directed to get his records including books of account examined and audited by a Chartered Accountant or a Cost Accountant during any stage of scrutiny, inquiry, investigation or any other proceedings depending upon the complexity of the case.
For looking and reviewing only at some specific areas of an organization’s activities, a special audit is conducted. Let us get in detail to know what actually a special audit is under GST.
Talking in general, there are different types of audit conducted. One is a Mandatory Audit which is done by professionals. The other one is a Departmental Audit covered under Section 65 and done by tax authorities. And the third one is special audit which is covered under Section 66 by Tax Authorities.
Special Audit
The provision of Special Audit is covered under Section 66 of GST Act. The special audit requires special people to audit and for that chartered accountant or a cost accountant nominated by the commissioner shall perform the special audit.
The chartered accountant appointed to perform the special audit shall be required to submit a report of the audit within 90 days.
You must be in doubt as to when the special audit will be conducted! So, to know when, continue reading and know the provision of applicability of special audit.
When special audit is conducted?
Where it is found while conducting an inquiry or investigation by an officer not below the rank of Assistant Commissioner that-
- that value has not been correctly declared or
- the credit availed is not within the normal limits;
he may after receiving the approval direct such taxable person to get the record audited.
Given that, the assistant commissioner will provide a communication in writing to conduct a special audit which must be given by filing FORM GST ADT-03. And then, the registered taxable person shall his accounts audited by an expert (chartered accountant or cost accountant).
Who will conduct Special Audit?
The chartered accountant or cost accountant so nominated shall within the period of ninety days submit a report of audit dully signed and certified by him.
Nonetheless, the registered person must be given an opportunity of being heard.
Who shall bear the expense of Special Audit?
Unquestionably, the commissioner shall bear the expense of the examination and audit of records including the remuneration of the one performing the special audit.