A Reference Library for Customs, Excise, Goods & Services Tax Officers and Tax Payers

Directorate General of Audit (DGA)

DG Audit

In a technology-driven, and trade friendly tax administration of a liberalized economy, in which the Department is striving to reduce departmental interface with the trade and assessees to minimal level, the role of Directorate General of Audit has assumed a great importance, The increasing responsibilities as well as the duties and responsibilities already assigned to it require strengthening of this Directorate.

Present charter of duties of the Directorate include:

(a) Providing direction for evolution and improvement of audit techniques and procedures;

(b) Ensuring effective and efficient implementation of new audit system by periodic reviews;

(c) Coordination with the external agencies as well as other formations Within the Department;

(d) Suggest measures to improve tax compliance to CBEC (now CBIC);

(e) Gauge the level or audit standards and assesses satisfaction;

(f) Evolve policy for development of a sound database as well as enhancing the skills of the auditors with a view to making the audit effective and meaningful;

(g) Aid and advise the Board In, policy formulation and to guide and prove functional directions in planning, coordination and supervision of audits at local levels;

(h) Collate and disseminate the relevant information; and,

(i) Implement EA-2000 audits and related projects like risk management, CAAP audits etc.

Performance of DGA

The Directorate has been shouldering the aforesaid responsibilities efficiently. In order to make Audit more efficient and productive, the Directorate General of Audit has taken many initiatives. These initiatives include:

(i) Fine tuning of Central Excise Audit Manual and Standard Audit Programmes.

(ii) Drafting of Service Tax Audit Manual.

(iii) Formulation and Implementation of the Framework for conducting Post-clearance Audit in Customs.

(iv) Introduction of a System of Quality Assurance Reviews to ensure compliance of EA 2000 process,

(v) Centralization of Risk Assessment System and calculation of risk parameters for all non-mandatory units.

(vi) Introduction of the Annual Financial Statement (ER4 return)

(vii) Pilot Project for CENVAT Verification

(viii) Monitoring of Audit performance of the field formations. Following chart indicates the number of Central Excise & Service Tax Audits conducted and duty evasion detected by the audit teams of the Commissionerates.

Sl. No. Period Number of audits conducted Total detection
(Rs. in cores)
Total recovery
(Rs. in cores)
1 2004-05 21313 1661 196
2 2005-06 25938 2094 280
3 2006-07 28391 3821 576
4 2007-08 30883 5101 930
5 2008-09 35257 7504 1522
DG_Audit

Based on cadre review proposals 2010.



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