OFFICE OF THE COMMISSIONER CUSTOMS AND CENTRAL EXCISE NAGPUR

F.NO. IV(16)30-727/98/ST/Pt.I/Nagpur, dated 27^TH Oct,1999

TRADE NOTICE NO.406/43/1999
SERVICE TAX DATED 27^th OCT.,1999

Visits by the officers to the premises of the Service Tax assessees for routine checks are not to be made. However to conduct Audit of the books and accounts and rectification of mistakes there is need to allow the visits by the Central Excise Officers. Accordingly visits by the officers of the Service Tax Cell for the purpose of rectification of mistakes under Section 74 of the Finance Act, 1994 may be made once every two years with the prior approval of the Commissioner.

2. Similarly, for conducting audit of accounts/records relating to Telephones, insurance and stock brokers which shall be conducted once a year; visits may be made. For auditing accounts/records of stock brokers, the following norms will be applied :

1. Stock brokers who pay Service Tax not exceeding Rs. Five lakh per anum – 10% of such registered stock brokers shall be selected and 10% selective check of their documents be conducted.
2. Stock brokers who pay Service Tax exceeding Rs. Five lakhs but not exceeding Rs. Fifty lakhs per annum – 20% of such stock brokers shall be selected and 10% selective check of their documents be conducted.
3. Stock brokers who pay Service Tax exceeding pay Rs. Fifty lakhs per annum – 50% of such brokers shall be selected and 20% selective check of their documents be conducted.

3 All visits will be made to the premises of the assessee of Service Tax with the prior approval of the Commissioner and after getting the permission from the Commissioner, the assessee will be given a written notice 15 days prior to date of visit of the officers explaining purpose of visit and clearly indicating the documents which may be required by the Central Excise officers for verification during the visit.

All Trade Associations, Chamber of Commerce and Members of RAC and PGRC are requested to bring the above contents of the Trade Notice to the knowledge of their constituent members in general and manufactures in particular.

Sd/-
(K.S.NAIR)
COMMISSIONER