The objective of revenue administration is optimising revenue collection as per law and increasing the level of voluntary compliance. Towards this objective tax audit plays a crucial role. Tax Audit is an examination of whether a tax payer has correctly assessed and reported their tax liability and fulfilled their other legal obligations. Tax audit aims at detecting non-compliance of tax laws and promoting voluntary compliance. Audit also guides and educates tax payer on the application of tax laws and improvement in record keeping to improve overall compliance level.