Special Audit under Various Law

Special Audit under Various Law

In India, the authority vested in various revenue departments and the Comptroller and Auditor General (CAG) enables them to initiate special audits under specific legal provisions to address and mitigate concerns related to tax evasion, revenue loss, and fraudulent activities. These special audits are systematically conducted across various domains, including under the Goods and Services Tax (GST), Service Tax, Central Excise and Customs, VAT/Sales Tax, and pursuant to Section 142(2A) of the Income Tax Act. Additionally, the CAG holds the power to direct special audits of companies, ensuring comprehensive scrutiny and transparency in financial operations. The mandate often includes conducting audits through empaneled auditors selected based on specific criteria such as business turnover and other pertinent factors, thereby ensuring a targeted and effective audit process. These special audits are not merely routine checks but serve as crucial instruments for the authorities to enforce compliance, optimize revenue collection, and safeguard the integrity of financial transactions within the established legal framework. By doing so, they play a vital role in maintaining the fiscal discipline and economic health of the nation, ensuring that any discrepancies are promptly identified and addressed.