IDENTIFICATION OF PERFORMANCE INDICATORS FOR AUDIT OF COMMERCIAL TAX ANU JOSE & MONICA RAJAMANOHAR

OUTLINE TAX BASE FILING OF RETURNS CALCULATION OF TAX LIABILITY CROSS VERIFICATION OF THIRD PARTY DATA AUDIT ENFORCEMENT APPEAL COLLECTION

PERFORMANCE INDICATORS FOR AUDIT OF COMMERCIAL TAX TAX BASE

IDENTIFICATION OF TAX BASE IndicatorPerformance Frequency of street surveyIf Monthly, Yes Adequacy of information sharing with other relevant departments Central Excise, Customs, Income Tax50% Railways, Transport75% Registration, Forests, Mines & Geology, CPWD90% Adequacy of action taken on the information>90%, Yes Existence of policy regarding e-Commerce tradersIf exists, Yes

REGISTRATION IndicatorPerformance Transparency of application processIf Online, Yes Adequacy of verification of dealer’s premises> 70%, Yes Timeliness of issue of registration certificate> 90%, Yes

MAINTENANCE OF TAX BASE IndicatorPerformance Frequency of street survey to ensure business continuity If Quarterly, Yes Adequacy of action on stopped / discontinued businesses > 90% of cancellation of registration certificates

CANCELLATION OF REGISTRATION IndicatorPerformance Adequacy of cancellation of registration certificates of non-filers > 95%, Yes Adequacy of cancellation of registration certificates on the basis of violation of any other prescribed norms > 95%, Yes Adequacy of follow up action (treatment of purchases, finalization of assessment) > 90%, Yes Conduct of audit of dealers who apply for cancellation > 90%, Yes

PERFORMANCE INDICATORS FOR AUDIT OF COMMERCIAL TAX FILING OF RETURNS

IndicatorPerformance Adequacy of formsQualitative Provision for online filing the returns along annexures and prescribed documents and e-payment If available, Yes Adequacy of action taken on non-filers> 90%, Yes Adequacy of action taken on persistent nil return filers> 90%, Yes Adequacy of action taken on belated filing of returns> 90%, Yes Payment of tax liability along with / before filing of returnIf available, Yes Adequacy of action taken on belated payment / dishonoured Cheques > 90%, Yes

PERFORMANCE INDICATORS FOR AUDIT OF COMMERCIAL TAX CALCULATION OF TAX LIABILITY

RATES & CLASSIFICATION IndicatorPerformance Adoption of HSN classificationYes If No, Extent of deviation from HSN< 30%, Yes Timeliness of issue of clarification and advance ruling > 90%, Yes Extent of adoption of rates prescribed by clarification and advance ruling > 90%, Yes

ASSESSMENT IndicatorPerformance Presence of system of automatic calculation of liability based on purchase and sales data filed by the dealers If available, Yes Presence of system of automatic issue of self / deemed assessment notices If available, Yes Adequacy of follow up of incomplete / incorrect returns through system provisional and/or Best Judgment assessment > 90%, Yes Adequacy of follow up of issue of notices (other than deemed) by revision of assessment > 90%, Yes

REFUND IndicatorPerformance Extent of scrutiny of returns before approval of refund > 90%, Yes Timeliness of issue of refund> 90%, Yes

PERFORMANCE INDICATORS FOR AUDIT OF COMMERCIAL TAX CROSS VERIFICATION OF THIRD PARTY DATA

IndicatorPerformance Adequacy of information sharing with other relevant departments Central Excise, Customs, Income Tax50% Railways, Transport75% Registration, Forests, Mines & Geology, CPWD90% Presence of system of risk rating of dealersIf available, Yes

PERFORMANCE INDICATORS FOR AUDIT OF COMMERCIAL TAX AUDIT

IndicatorPerformance Whether audit and assessment are independent of each other? If available, Yes Whether selection of dealers for audit is based on set criteria or subjective? If available, Yes Adequacy of coverage of high risk dealers in selection> 90%, Yes Timeliness of selection> 90%, Yes Timeliness of conduct of audit> 90%, Yes Timeliness of follow up of audit proposals by assessing authority > 90%, Yes

PERFORMANCE INDICATORS FOR AUDIT OF COMMERCIAL TAX ENFORCEMENT

MONITORING OF MOVEMENT OF VEHICLES IndicatorPerformance Adequacy of number and location of check postsQualitative Completeness of data entry of movement of goods through check posts > 90%, Yes Adequacy cross verification of documents> 90%, Yes Adequacy of physical verification of the vehicles, levy of compounding fees and advance tax > 90%, Yes Adequacy of follow up action on discrepancies found> 90%, Yes

INTER STATE INVESTIGATION CELL IndicatorPerformance Pendency of verification of Extract Verification by ISIC< 30%, Yes Presence of system of identification of bogus dealers and black listing If available, Yes

PERFORMANCE INDICATORS FOR AUDIT OF COMMERCIAL TAX APPEAL

IndicatorPerformance Timely disposal of cases> 90%, Yes Efficiency of system of appeal by department> 60%, Yes (Success) Adequacy of follow-up made on cases decided by appellate forums within stipulated time > 90%, Yes Presence of system of intimation about identical issues pending in court by the dealers If available, Yes

PERFORMANCE INDICATORS FOR AUDIT OF COMMERCIAL TAX COLLECTION

IndicatorPerformance Percentage of arrear collection> 20%, Yes Percentage of ineligible dealers whose arrears were settled under settlement schemes < 5%, Yes Percentage of revenue recovered through RR act> 10%, Yes

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