Insurance firms being probed for evasion of service tax
New Delhi: Several insurance firms and companies are being probed for suspected evasion of service tax and recoveries have been made in some cases, Finance Minister P Chidambaram told Lok Sabha today.
During Question Hour Chidambaram provided a list of such insurance companies and firms which are suspected to have evaded service tax or found after investigations to have engaged in financial wrongdoings.
"In cases where investigation has been completed, show cause notices have been issued. Some cases have been adjudicated and demands of service tax confirmed. Appeals against some orders are pending before the Customs, Excise and Service Tax Appellate Tribunal," Chidambaram said.
He said recoveries have been made in some cases.
"At this stage, it may not be possible to quantify the exact tax liability in each case," he said.
Seven insurance companies were found evading service tax in 2009-10, nine in 2010-11 and ten in 2011-12.
In 2012-13 (up to October) eight companies have been found guilty of service tax evasion.
These are: Bharat Reinsurance Company, IFFCO Tokio General Insurance Services Limited, Apollo DKV Insurance Company Limited, DLF Premierico Life Insurance Company, Aviva Life Insurance Company India Limited, Sri Ram Life Insurance,
Sahara India Life Insurance Corporation, Reliance Life Insurance Company Limited, Chidambaram said in his written reply.