Winning Bizness Desk

Mumbai. Tax Authorities have prepared to send notices to 16 insurance companies as it feels that these 16 insurance companies have not paid tax worth billions of rupees to the government. Out of these, notices have been sent to 2 companies Bajaj Allianz Life Insurance and ICICI Prudential Life Insurance. According to a report, the tax authorities feel that these 16 insurance companies have evaded tax since 2017. According to sources, according to the tax authorities, 16 insurance companies owe the government about $610 million, or Rs 50 billion. For this reason, by sending a show cause notice to the concerned insurance companies in the investigation, they can be asked to respond.

Investigation started in September last year

According to the news, the investigation started in September last year regarding tax evasion by insurance companies. Sources say that in the insurance industry, commission in excess of the limit approved by regulator IRDA is shown as advertising or marketing expenses, and tax credit is claimed on the basis of them. In this way, the government exchequer has been hit by billions. In July 2017, the central government had implemented the new indirect tax system Goods and Services Tax i.e. GST in the country. Tax authorities suspect that 16 insurance companies have committed tax evasion since the implementation of GST. In this way, a liability of about 50 billion rupees is created by including the outstanding tax, interest and penalty on 16 companies.

Other companies are in the line

Sources said that the Directorate General of Vigilance GST is preparing to send show cause notices to all those companies, which are included in the 16 insurance companies under investigation. However, no official information has been given about this. Neither the Directorate General of GST nor any other government department has commented on this. The companies concerned have also not publicly said anything about the alleged notice or investigation.