6 (A). Audit of Accounts, etc. and raising of demand in certain cases.

(1) Notwithstanding anything contained in section 7 and subject to such conditions, restrictions and in such manner, as may be prescribed, the Commissioner shall, from among registered employers, select, on a random basis or upon information or otherwise, such percentage, or such class or classes of employers, as may be prescribed, for audit of the accounts, registers or documents, including those in the form of electronic records, maintained or kept by such employers for any year or part thereof, not being a period which has ended four years previous to the date of selection.

(2) After a selection is made under sub-section (1), the Commissioner shall, with due notice to the employer so selected, proceed to audit the accounts, registers and documents, including those in the form of electronic records, maintained or kept by the employer to verify the correctness of the returns furnished and tax paid thereon, for the year or part thereof as referred to in sub-section (1).

(3) The Commissioner shall, after considering all the evidence produced in course of of the proceedings or collected by him, or to the best of his judgement where the employer has failed to comply with the notice issued under sub-section (1), prepare a report stating his observation or findings therein, and also prepare a computation sheet, in the form and manner as may be prescribed, to be attached with the report showing quantification of tax, interest, or late fee payable by him:

Provided that the Commissioner shall, before preparing the report, provide the employer and opportunity of being heard and incorporate his objections, if any, in such report.

(4) Any audit under this section shall be completed within a period not exceeding three months from the date on which the selection is made by the Commissioner:

 Provided that where the Commissioner is satisfied that audit in respect of any employer cannot be completed within three months from the date of selection, he may upon giving the employer an opportunity of being heard and for the reasons to be recorded in writing, extend the period for another three months and shall immediately communicate the same to the employer.

(5) Where the employer accepts the findings in the report and pays the tax, interest or late fee as shown in the computation sheet stated in sub-section(3), the proceeding under this section shall automatically stand dropped.

(6) Where the employer fails to pay the tax, interest, or late fee as stated in the computation sheet attached to the report, within one month of receipt of such report and the computation sheet, the report shall, on expiry of the said one month, be deemed to be an order of assessment under section 7 and the computation sheet attached to the report shall be deemed to be a notice of demand and the amount mentioned therein, shall be payable within fifteen days thereafter.