Checklist for Internal Audit of Taxation

Particulars	Checked By	Remarks
A	Check for applicability of various Acts
1	Income Tax
2	VAT
3	CST
4	Excise Duty
5	Service Tax
B	Payment
	Check that
1	Payment is made before due date by Authorised person
2	Proper due date chart is maintained and displayed.
3	The Unit Head intimates the Asst Taxation Manager about the statutory payments through mail/hard copy before 3 days of the due date.
4	Copy of challans is sent to Asst Taxation Manager by 10th of next month
5	Monthly consolidated report in prescribed format for all statutory payments is forwarded to Asst Taxation Manager
6	All the financials are certified by Unit Head
C	Filing & Checking of Returns
	Check that
1	All the challans and returns are submitted directly by the unit.
2	The same is verified by Asst. Taxation Manager before filing and confirmation sent
3	All legal compliances are fulfilled by Unit Head and the same is informed to ATM
4	The following returns are timely filed
i	e TDS Return
ii	Excise Return:
iii	VAT Return:
iv	Service tax Return:
v	ESI & PF Return:
D	Scrutiny/ Audit objection / Query from Govt. Department
	Check that
1	The information of the notice received by the unit from the department (i.e. Income Tax, Sales Tax etc.) is sent to the Asst Taxation Manager by the Unit Head.
2	Asst Taxation Manager checks the status of scrutiny/ audit objection/ query etc.
3	Asst Taxation Manager prepares the reply of the order / query received by gathering information requirements from Unit Head and send a copy to Unit Head
E	General
	Check that
1	Any amendment in the applicable act is informed by the Asst Taxation Manager to the Unit Head with the due date of applicability.
2	Unit Head follows the Notification / circular (Direct & Indirect tax) issued by Govt. when informed by the Asst. taxation manager.
3	The following certified details are provided by Unit Head to ATM -
i	Challan of tax payment
ii	Ledger of the account.
iii	Account statement of party / Purchase / sales etc.
iv	Rate of TDS/ VAT/ CST/ Excise Duty / Service tax / PF / ESI
v	Statement of VAT-7,VAT-8 & VAT-9
vi	Details of statutory forms (VAT forms) used during the period.
vii	Ledger of VAT / Excise / Service Tax
viii	Return shall be Certified / verified by Unit head.
ix	Return shall be authorized by taxation Dept.
x	Return shall be filed on due date