CBIC registered 106 cases on insurers for Tax Evasion of Rs.7581.8 Crore

The Central Board of Indirect Taxes and Customs (CBIC) has registered 106 cases of tax evasion involving a total of 7,581.8 crore against various insurance companies in the last five years, and the Income Tax department has also begun taking action against them, the Finance Ministry informed Parliament.

Approximately 1,347.2 crore has been recovered from cases involving indirect taxes involving Service Tax evasion prior to the implementation of the Goods and Services Tax (GST), non-payment or short payment of GST under the reverse charge mechanism, or availment of ineligible Input Tax Credit, said Minister of State for Finance Pankaj Chaudhary in Lok Sabha on Monday.

He was responding to a query from MP V. K. Sreekandan regarding insurance companies being “under the scanner for massive tax fraud“. It was reported last month that the IT department intends to crack down on corporations after discovering widespread anomalies and evasion in the industry.

“If any incidence of tax evasion is brought to the attention of the Income Tax Department, necessary action is taken, including conducting searches and surveys, assessing income, levying and recovering tax, imposing penalties, and initiating prosecution… against such tax evader(s). Similar remedies are done in situations of fraud in a variety of industries, including insurance,” Mr. Chaudhary stated.