2. Letter No.A1.17674/05/TX Dt. 04.06.05 of the
Commissionerate of Commercial Taxes, TVM
3. Circular No.23/05/CT Dt, 09.09.05
Consequent on the implementation of the Value Added
System of taxation in the State with effect from
01.04.2005, Government have ordered the restructuring
of the Commercial Taxes Department as per Government
order cited as first above. The Internal Audit Wing
of the department stands abolished with effect from
31.03.2005. It is further ordered that the Internal
Audit function will be handled by the Audit Assessment
Wing. For this purpose operational instructions
were issued by the Commissioner of Commercial Taxes
in the circular 3rd cited. In order to
supplement the instructions along issued, the following
further instructions are issued. At present there
are six units of the Audit Assessment Wing each
headed by the Deputy Commissioner with head quarters
and territorial jurisdiction as specified below:
Head Quarters
Territorial Jurisdiction
1. Thiruvananthapuram Thiruvananthapuram,Kollam,Pathanamthitta
District
2. Kottayam
Kottayam,Alappuzha,Idukki Districts
3. Ernakulam Ernakulam
and Mattancherry
4. Palakkad
Palakkad and Trissur Districts
5. Kozhikode Kozhikode,Malappuram
and Wyanad Districts
6. Kannur
Kannur and Kasargod Districts
The Staff structure of Asst. Commissioners
and Commercial Taxes Officers under Value Added
Taxes (AA) is as under:
District. No.of Assmt.Commissioner
No.of STOs VAT(AA)
VAT(AA)
Thiruvananthapuram 2
8
Kollam
2 8
Pathanamthitta
1 4
Alappuzha
1 7
Kottayam
2 10
Idukki
1 3
Ernakulam
5 13
Mattancherry
2 9
Trissur
2 11
Palakkad
2 10
Malappuram
1 6
Kozhikode
2 8
Wayanad
0 4
Kannur
1 9
Kasargod
1 3
25
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In
the reference cited second, it has been directed
to handover the Internal audit files of each district
to the Asst. Commissioner (Audit Assessment), Concerned
of that District.
The Asst. Commissioners (Audit Assessment), shall
ascertained and record the total pendency of defects
as on 31.03.05 in the Internal Audit Notes of each
office under their jurisdiction. The Assistant Commissioners
(AA), should ensure that the entire defects in the
internal audit notes for the period upto 31.03.05
are rectified by 31.12.05.
The assessing authorities under the KGST Act are
strictly directed to rectify the pending defects
in the Internal Audit Reports and furnish reply
on all the Audit objections to the Assistant Commissioner
(Audit Asst.) concerned within the above time limit.
The Deputy Commissioners (Audit Asst) shall chalk
out programmes for Internal Audit of Officers under
their jurisdiction well in advance and communicate
it to the assessing authorities as well as to the
District Deputy Commissioner.
They shall group Commercial Taxes Officers Value
Added Tax (Audit Assessment), in to batches, headed
by one Asst. Commissioner (Audit Assessment).
Each and every file shall be audited with reference
to connected registers, in accordance with the procedure
laid down in Agricultural Income Tax and Sales Tax
Mannual Volume III. The audit Note prepared should
be scrutinized by the Deputy Commissioners (Audit
Assessment), before sending them to the concerned
office, by marking copy to the District Deputy Commissioners.
The Deputy Commissioner (Audit Assessment), shall
submit special reports to the Commissioner on all
major irregularities and cases having loss of revenue
of Rs.25000/- and above detected by the Audit team.
The Deputy Commissioner (Audit Assmt). Shall inspect
sub officers of all wings of the Department including
Check Posts with a view to improve to performance
of the Department. Audit to be conducted include
concurrent audit of Assessment orders and performance.
The audit to be conducted include the following:
1.
Auditing of assessment orders under KGST Act, Kerala
Value Added Tax Act, CST Act, Kerala Agrl. Income
Tax Act, Luxury Tax Act, Entry Tax Act, etc.
2.
Auditing of maintenance of registers and other records.
Auditing of correctness of figures reported in the
monthly diary (Assessment, Collection, DCB etc)
3.
Auditing of proper filing of return and payment
of tax by assesses.
4.
Auditing of arrear action and action taken to collect
demands outstanding and its follow up.
5.
Auditing of encashment of cheques.
6.
Auditing of filing and utilization of check post
declarations, OR Files, Crime files etc.
7.
Auditing the correctness of receipt of security
Deposit, Advance Tax, Entry Tax etc. at the Check
post.
8.
Auditing of files under Money Lenders Act in Inspecting
Asst. Commissioner’s offices and verify whether
security Deposits are collected promptly in accordance
with the schedule of the Kerala Money Lending Act.
9.
Auditing of OR Files in office of the Sales Tax
Officer (Enquiry)
10.
Auditing of files to verify transport of goods on
the strength of transit pass.
11.
Auditing the promptness of despatch of check post
declarations.
12.
Any other mode of inspection of check posts to unearth
irregularities in the check post and make the function
of check post effective.
Inspection
of any office under the jurisdiction of the Deputy
Commissioner (Audit Assessment), to ensure that
the functioning of the office is proper and effective.
The
Deputy Commissioner (Audit Assessment), shall also
arrange special audit of the Sales Tax Officers
including special circles, if found necessary on
scrutiny of assessment files and statutory registers
and other records maintained.
The Deputy Commissioner (Audit Assessment) shall
submit monthly diary relating to the works turned
out by the audit officers under his control to the
Commissioner of Commercial Taxes, Thiruvananthapuram,
with his review report in the performance of the
officers, so as to reach it to the Commissioner’s
office on or before the 15th of every
succeeding month.
The Deputy Commissioners (Audit Assmt), should acknowledge
the receipt of the Circular and obtain acknowledgement
from their subordinates.
Sd/
Commissioner
