90. Audit and investigation of a taxpayer’s economic activities.—

(1) The Commissioner or the Director- General may, to prevent tax evasion, conduct, under the provisions of this Act or the rules made thereunder, audit and investigation into all  affairs of a taxpayer’s economic activities.

(2) The Board shall, in order to conduct such audit and investigation activities, frame rules and compile and publish an Audit Manual.

(3) An Officer of VAT, duly empowered by the Commissioner or the Director- General, shall, after conducting the audit and the investigation in accordance with the procedure laid down in the Audit Manual, submit an audit report to the Commissioner or the Director-General.

(4) If, in the audit report referred to under sub-section (3), any tax liability for the audited tax period of any taxpayer is identified, the Commissioner or the Director- General shall fix the tax liability, and shall, after determining the interest payable on such unpaid tax, refer the matter to the concerned officer for initiating next proceedings for the collection of such unpaid tax.