KOLKATA: The Life Insurance Corporation of India, the country's largest insurance coverage company, has won a Rs 2,050-crore provider tax notice from the Directorate-General of Goods & Services Tax Intelligence (DGGI).
Tax officials stated the notice used to be issued by way of the DGGI's Kolkata zonal administrative center for alleged "suppression of facts with intent to evade payment of service tax" on forfeited policies (policies discontinued because of non-payment of top class). The DGGI notice to LIC used to be for non-payment of provider tax on forfeited policies since July 2012.
LIC officials admitted getting the DGGI notice "based on tax officials' interpretation of certain provisions of the Finance Act" however added that that they had spoke back to the notice and there used to be no suppression of facts. "We have already spoke back to the notice, presenting our side. We have provided, through documents and depositions, each piece of data sought by way of the DGGI.
As one of the vital absolute best tax-paying and maximum tax-compliant establishments within the country, we would like to categorically state that, on our part, nor is there any suppression of facts nor any purpose to evade tax," the LIC stated in an mailed reaction to TOI.
The Kolkata DGGI notice can become a precedent in an industry that has 23 life insurance coverage companies besides LIC, say GST officials. GST professional Sanjib Kothari stated companies may just go for adjudication in such circumstances however felt it would be higher to pay the tax after asking for waiver of the penalty and interest parts. "Defaulters may have to pay the entire amount if they opt for adjudication and their plea is dismissed," he stated.
The DGGI notice, a duplicate of which is with TOI, says: "The mention of forfeiture-related conditions have been there in policy documents pertaining to endowment policies sold by LIC both before and after statutory provisions in new sections of the Finance Act 1994 came into effect from July 2012."
Tax officials stated the notice used to be issued by way of the DGGI's Kolkata zonal administrative center for alleged "suppression of facts with intent to evade payment of service tax" on forfeited policies (policies discontinued because of non-payment of top class). The DGGI notice to LIC used to be for non-payment of provider tax on forfeited policies since July 2012.
LIC officials admitted getting the DGGI notice "based on tax officials' interpretation of certain provisions of the Finance Act" however added that that they had spoke back to the notice and there used to be no suppression of facts. "We have already spoke back to the notice, presenting our side. We have provided, through documents and depositions, each piece of data sought by way of the DGGI.
As one of the vital absolute best tax-paying and maximum tax-compliant establishments within the country, we would like to categorically state that, on our part, nor is there any suppression of facts nor any purpose to evade tax," the LIC stated in an mailed reaction to TOI.
The Kolkata DGGI notice can become a precedent in an industry that has 23 life insurance coverage companies besides LIC, say GST officials. GST professional Sanjib Kothari stated companies may just go for adjudication in such circumstances however felt it would be higher to pay the tax after asking for waiver of the penalty and interest parts. "Defaulters may have to pay the entire amount if they opt for adjudication and their plea is dismissed," he stated.
The DGGI notice, a duplicate of which is with TOI, says: "The mention of forfeiture-related conditions have been there in policy documents pertaining to endowment policies sold by LIC both before and after statutory provisions in new sections of the Finance Act 1994 came into effect from July 2012."
LIC gets Rs 2,050 crore service tax evasion notice
![LIC gets Rs 2,050 crore service tax evasion notice]()
Reviewed by Kailash
on
June 17, 2018
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