State GST Dept. invites CA, CA Firms for conducting Special Audit of GST under State GST ACT

Expressions of Interest (EOI) is here by invited for empanelment of Chartered Accountants, Chartered Accountant firms, Cost Accountants and Cost Accountant firms for conducting special audit of accounts of GST Registered persons as envisaged under Section 66 of the Kerala State Goods and Services Tax Act, 2017.

The EOI document can be downloaded from the official website of State Goods and Services Tax Department, Kerala www.keralataxes.gov.in.

The duly filled up application in Annexure A along with the supporting documents, information and declaration as prescribed in Annexures B to E are to be submitted to the official Email ID of the Commissioner of State GST Department, Kerala “[email protected]”. The last date of submission of EOI is 21st May 2022 (Time 04.00 PM).

The critical date sheet is as under:

Note: (i) Pre-proposal meeting link: https://us06web.zoom.us/j/82302932020 ?pwd=YWhRbzJTV2RSbHh0Vm1kS jAyMmxKZz09 (Meeting ID: 823 0293 2020 Passcode:847638)

(ii) If any due date happens to be a holiday then the next working day will be the due date at the same time.

Eligibility:-

In order to be eligible for to be empanelled for the said audit, a person/ firm should fulfill the following conditions:-

The applicant firm/ person should–

i. Be a member of the Institute of Chartered Accountants of India/Institute of Cost Accountants of India and should have valid full time Certificate of practice issued by the respective institutes;

ii. Possess experience of at least five years of practice as Chartered Accountant/ Cost Accountant;

iii. That the applicant or any partner/proprietor of the applicant firm having experience and practice as stated above should not have indulged in any unethical professional practice or professional misconduct including moral turpitude;

iv. Not have been held guilty of any professional misconduct under the Cost and Works Accountant Act,1956(as amended) or Chartered Accountants Act, 1949 (as amended) during past five years or penalized under Chapter V of the Finance Act 1994 or Customs Act 1962 or Central Excise Act 1944 or KVAT Act,2003 or the Central/ IGST/ Kerala State Goods and Service Tax Act,2017;

v. Not be facing any investigation or enquiry by the CBIC or Govt. of Kerala or any of its subordinate offices for any violations under the Service Tax Law or the Customs Act, 1962 or the Central Excise Act , 1944 , KVAT Act , 2003 or the Central/ IGST/ Kerala State Goods and Service Tax Act,2017;

vi. Location of office:-That the location of the office of the applicant / partner/ proprietor having experience as stated above who is in charge of such office should be in Kerala.

Selection Procedure:-

The selection will be as follows: All the applications received up to the last date for filing of application shall be scrutinized in terms of criteria/guidelines issued in this regard. The basic criteria for selecting the applicant would be the experience in audit/ consultancy/ representation in the Income Tax, Central Excise, Service Tax, VAT and GST matters, turnover, staff strength, audit experience etc. The detailed evaluation criteria would be as follows:-

a. Applicant’s existence in years after its registration (Provide copy of certificate of registration with Institute of Chartered Accountants of India/ Institute of Cost Accountants of India):-

• More than 5 years but less than 10 years : 60 %
• 10 years or more but less than 15 years :75%
• 15 years or more :100%

(The above criterion carries 15Marks.)

b. That the applicant(s) has/ have been empanelled as auditor with any one of the following departments during the last 7 years ( Provide copy of order / letter of empanelment with the Department(s)):-

(i) Department of Income Tax

(ii) Department of Customs and Central Excise

(iii) Department of Service Tax

(iv) Department of Value Added Tax (Commercial Taxes)

(v) Department of Goods& Services Tax

(The above criterion carries 4 Marks in case of one (01) department, 7 Marks for two (02) departments, 11 Marks for three (03) departments and maximum 15 Marks for four (04) or more departments.)

c. That the applicant(s) has/ have average annual turnover in last three financial years (Provide copies of full Income tax returns & Financial Accounts for the last three financial years):-

• 10 lakhs–50 lakhs : 60%
• 50 lakhs–1 crore : 70%
• 1 crore–2 crore : 80%
• More than 2 crore : 100 % (The above criterion carries 15 Marks.)

Scope of Work:-

The Special Audit shall be conducted by the Special Auditor under section 66 of Kerala Goods and Services Tax Act, 2017. He shall examine and audit the records & books of accounts of the registered person. He shall check and verify the compliance of the provisions of Kerala SGST Act, CGST Act & IGST Act, 2017 and Rules made there under by the registered person including the correctness of turnover declared, input tax credit availed, taxes paid, refund claimed etc. and detect the tax evasion, if any, by the registered person. He shall submit his report within the prescribed period as per the provisions of the Act. In case the registered person does not accept the findings of the Special Audit and consequent tax liability, interest etc. &contests the same by way of appeal, the auditor will render all required assistance/advice in the matter to protect the interest of the government in such appeals.

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