34. Audit assessment:-

Subject to the provisions contained in Section 39 of the Act the following categories of cases may be taken up for Audit assessment ---

[i] Cases where gross turnover exceeds twenty lakh rupees in a year;

[ii] Cases where claim of input tax credit exceeds two lakh rupees in a year;

[iii] Cases where amount of refund exceeds one lakh rupees in a year.

[iv] Cases where claim of sales made in the course of interstate trade and commerce or in the course of export of goods out of the territory of India or in the course of import of goods into the territory of India or stock transfers/consignment sales exceeds ten lakh rupees in a year.

[v] Cases where there is a decrease in gross turnover compared to the previous year.

[vi] Cases where payment of tax is lesser compared to the previous year.

[vii] Cases where claim of sales, purchases or consignment of goods does not match with the accounts of other parties to the transaction.

[viii] Cases in which the ratio between purchases and sales or between input tax and output tax or between stocks and sales is not commensurate or is way out of the general trend of the trade or industry.

[ix] Cases based on definite intelligence about evasion of tax.

[x] Cases of any particular trade which the Commissioner may select.