DGGSTI has sent letters to the SBI, PNB, Canara Bank, Syndicate Bank and ATM service providers, including NCR, AGS Transact, Tata Payments Solutions and Hitachi.
The Revenue Department has launched a probe into alleged collusion between select banks and ATM service providers to evade payment of Value Added Tax (VAT) and wrongly claim tax credit, according to an Economic Times report.
The Directorate General of Goods and Services Tax Intelligence (DGGSTI) has sent letters to the State Bank of India (SBI), Punjab National Bank (PNB), Canara Bank, Syndicate Bank as well as some of their ATM service providers, including NCR, AGS Transact, Tata Payments Solutions and Hitachi, the report said.
“In connection to the investigations into alleged irregularities in availment of Cenvat credit pertaining to ATM transactions by certain banks, please provide details in respect of Syndicate Bank, Canara Bank, Punjab National Bank and State Bank of India and erstwhile associate banks of State Bank of India,” read a letter issued by DGGSTI’s Kochi office to an ATM service provider.
The Revenue Department’s intelligence unit has sought three kinds of information such as details of different type of services provided to banks, copies of agreement/contract/work order or any other document governing terms and conditions of outsourcing of ATMs and annual reports of financial years between 2013-14 and 2016-17.
Most banks which had been asked for similar information, had already submitted the information in February, the report added.