Tax Audit
Taxation Audit for your entity
Ensure compliance and accuracy in your tax matters with our meticulous Taxation Audit services at Vakilify.
Benefits
• Understanding the Correct Timing of Supply ensures taxes are neither prepaid nor postpaid, leading to on-time payments, saving on interest costs and penalties. For instance, tax liabilities on advance receipts can be managed effectively.
• Determining the Correct Place of Supply ensures accurate tax collection and payment (IGST, CGST, SGST). Ensuring the right taxes are paid under respective supplies is crucial. For example, identifying intra-state supplies accurately.
• Adherence to the correct GST rates for goods and services, given the frequent revisions in tax rates throughout the year.
• Ensuring any over-collected taxes are refunded to avoid profiteering and penalties, while any under-collection is rectified promptly.
• Accurate HSN Codes for goods and services in GSTR 1 returns.
• Maintaining Books of Accounts as per statutory requirements.
• Issuing invoices with complete and necessary information.
• Reconciling GST returns with Books of Accounts and electronic ledgers.
• Identifying unclaimed GST Input Tax Credits, such as on bank charges or sundry expenses.
• Proper recording and claiming of GST Input Tax Credits for fixed assets, including availing necessary depreciation.
• Correctly claiming refunds for exporters on tax paid for inputs.
• Rectifying any wrongly claimed ITC or reversals required.
• Compliance with Reverse Charge Tax payment for specific services.
Procedure
• Reconciliation of turnover, ITC, and tax payments.
• Reviewing Accounts/GST Returns.
• Classifying Supplies correctly.
• Complying with Reverse Charge Mechanism (RCM).
• Reviewing "other income" booked.
• Ensuring eligibility of Input Tax Credits.
• Assessing outstanding creditors over 180 days.
• Reviewing sale/disposal of business assets.
• Examining transactions not included in annual accounts.
Documents Required
• Offer letter outlining auditor and management objectives.
• Engagement and appointment letters.
• Audit plan and program.
• Comprehensive audit checklist for GST audits or GSTR 9C.
• Invoices, agreements, etc.
• Written representation letters from management.
• GST return copies, tax details, sales records, etc.
• Reporting significant audit matters and internal control deficiencies to management.
• Risk assessment for high and low-risk areas.
• Maintaining electronic working papers in various formats.
Why Choose Vakilify?
• Access to experienced GST auditors.
• Extensive domain expertise.
• Identification of loopholes and vulnerabilities.
• Thorough assessment in line with statutory regulations.
• Access to legal and financial experts for guidance.
FAQs
What is a Tax Audit?
A Tax Audit is an examination of a taxpayer's financial records and statements to verify the accuracy of their tax filings and ensure compliance with tax laws.
Why is a Tax Audit necessary?
A Tax Audit is necessary to ensure that taxpayers are accurately reporting their income, deductions, and credits, thus maintaining transparency and compliance with tax regulations.
Who needs to undergo a Tax Audit?
Taxpayers meeting certain criteria specified by tax authorities, such as individuals, businesses, or entities with high annual turnover or specific financial transactions, may be required to undergo a Tax Audit.
What are the benefits of a Tax Audit?
A Tax Audit helps in identifying errors, discrepancies, or potential tax liabilities, ensuring proper utilization of tax benefits and deductions, minimizing the risk of penalties, and maintaining tax compliance.
Can Vakilify assist with Tax Audits?
Yes, Vakilify offers expert Tax Audit services conducted by qualified professionals to ensure thorough examination and compliance with tax laws, minimizing the risk of non-compliance and penalties.