0

Service Tax Audits and Assessments

Description: This quiz covers various aspects of Service Tax Audits and Assessments under Indian Law.
Number of Questions: 15
Created by:
Tags: service tax audits assessments indian law
Attempted 0/15 Correct 0 Score 0

What is the primary objective of a Service Tax Audit?

  1. To verify the accuracy of Service Tax returns filed by taxpayers.

  2. To assess the Service Tax liability of taxpayers.

  3. To detect and prevent Service Tax evasion.

  4. All of the above.


Correct Option: D
Explanation:

The primary objective of a Service Tax Audit is to ensure compliance with Service Tax laws, including verifying the accuracy of returns, assessing liability, and detecting evasion.

Who is responsible for conducting Service Tax Audits?

  1. The Central Board of Indirect Taxes and Customs (CBIC).

  2. The Directorate General of GST Intelligence (DGGI).

  3. The Commissioner of Service Tax.

  4. All of the above.


Correct Option: D
Explanation:

Service Tax Audits can be conducted by various authorities, including CBIC, DGGI, and the Commissioner of Service Tax.

What is the time limit for completing a Service Tax Audit?

  1. One year from the date of commencement of the audit.

  2. Two years from the date of commencement of the audit.

  3. Three years from the date of commencement of the audit.

  4. Four years from the date of commencement of the audit.


Correct Option: A
Explanation:

As per the Service Tax law, the audit must be completed within one year from the date of its commencement.

What are the consequences of failing to file a Service Tax return or paying Service Tax?

  1. Penalty and interest.

  2. Imprisonment.

  3. Both penalty and imprisonment.

  4. None of the above.


Correct Option: C
Explanation:

Failing to file a Service Tax return or paying Service Tax can result in both penalty and imprisonment, as per the Service Tax law.

What is the procedure for conducting a Service Tax Audit?

  1. The audit team examines the taxpayer's records and accounts.

  2. The audit team may also conduct physical verification of the taxpayer's premises.

  3. The audit team may seek explanations and clarifications from the taxpayer.

  4. All of the above.


Correct Option: D
Explanation:

The Service Tax Audit procedure involves examining records, conducting physical verification, and seeking explanations from the taxpayer.

What is the purpose of a Service Tax Assessment?

  1. To determine the Service Tax liability of a taxpayer.

  2. To issue a Service Tax demand notice to the taxpayer.

  3. To impose penalties and interest on the taxpayer.

  4. All of the above.


Correct Option: D
Explanation:

The purpose of a Service Tax Assessment is to determine liability, issue demand notices, and impose penalties and interest.

Who is responsible for conducting Service Tax Assessments?

  1. The Commissioner of Service Tax.

  2. The Deputy Commissioner of Service Tax.

  3. The Assistant Commissioner of Service Tax.

  4. All of the above.


Correct Option: D
Explanation:

Service Tax Assessments can be conducted by various authorities, including the Commissioner, Deputy Commissioner, and Assistant Commissioner of Service Tax.

What is the time limit for issuing a Service Tax demand notice?

  1. One year from the date of completion of the audit.

  2. Two years from the date of completion of the audit.

  3. Three years from the date of completion of the audit.

  4. Four years from the date of completion of the audit.


Correct Option: C
Explanation:

As per the Service Tax law, a demand notice must be issued within three years from the date of completion of the audit.

What are the consequences of failing to pay Service Tax within the specified time?

  1. Penalty and interest.

  2. Attachment of property.

  3. Both penalty and attachment of property.

  4. None of the above.


Correct Option: C
Explanation:

Failing to pay Service Tax within the specified time can result in both penalty and attachment of property, as per the Service Tax law.

What is the procedure for filing an appeal against a Service Tax Assessment?

  1. File an appeal with the Commissioner (Appeals).

  2. File an appeal with the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

  3. File an appeal with the Supreme Court.

  4. All of the above.


Correct Option: D
Explanation:

Appeals against Service Tax Assessments can be filed with the Commissioner (Appeals), CESTAT, and the Supreme Court.

What is the time limit for filing an appeal against a Service Tax Assessment?

  1. One month from the date of receipt of the assessment order.

  2. Two months from the date of receipt of the assessment order.

  3. Three months from the date of receipt of the assessment order.

  4. Four months from the date of receipt of the assessment order.


Correct Option: A
Explanation:

Appeals against Service Tax Assessments must be filed within one month from the date of receipt of the assessment order.

What is the role of the Commissioner (Appeals) in Service Tax matters?

  1. To hear and decide appeals filed against Service Tax Assessments.

  2. To review the findings of the audit team.

  3. To issue orders for refund of Service Tax.

  4. All of the above.


Correct Option: D
Explanation:

The Commissioner (Appeals) hears appeals, reviews audit findings, and issues refund orders in Service Tax matters.

What is the role of CESTAT in Service Tax matters?

  1. To hear and decide appeals filed against orders of the Commissioner (Appeals).

  2. To review the findings of the audit team.

  3. To issue orders for refund of Service Tax.

  4. All of the above.


Correct Option: A
Explanation:

CESTAT hears appeals against orders of the Commissioner (Appeals) in Service Tax matters.

What is the role of the Supreme Court in Service Tax matters?

  1. To hear and decide appeals filed against orders of CESTAT.

  2. To review the findings of the audit team.

  3. To issue orders for refund of Service Tax.

  4. All of the above.


Correct Option: A
Explanation:

The Supreme Court hears appeals against orders of CESTAT in Service Tax matters.

What are the common defenses raised by taxpayers in Service Tax audits and assessments?

  1. Incorrect classification of services.

  2. Exemption from Service Tax.

  3. Incorrect calculation of Service Tax liability.

  4. All of the above.


Correct Option: D
Explanation:

Taxpayers may raise various defenses, including incorrect classification, exemption, and incorrect calculation of liability, during Service Tax audits and assessments.

- Hide questions