Public sector banks State Bank of India (SBI), Punjab National Bank (PNB), Canara Bank, Syndicate Bank and some ATM service providers have come under the tax lens now. The revenue department's intelligence unit has started an investigation over avoiding payment of Value Added Tax (VAT) and the wrongful claim of the tax credit.
The Directorate General of Goods and Services Tax Intelligence (DGGSTI) shot off letters to SBI, PNB, Canara Bank, Syndicate Bank and some ATM providers such as AGS Transact, TATA Payment Solutions, NCR, and Hitachi on the issue, Economic Times reported.
"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," Economic Times reports quoting a letter issued by DGGSTI's Kochi office to an ATM service provider on March 12.
The report comes at a time when the 11,400 crore worth PNB scam and a list of other bank frauds like Canara Bank case, Archana Bhargava involved United Bank of India fraud case raised questions about the governance and credit managing practices at private and public sector banks in the country.
In February, the Central Vigilance Commission (CVC) permitted the prosecution of 30 officials from 13 banks from January 2015 to December 2017. Among the 30 officials, five each are from state-run PNB and UBI. SBI is also listed with four of its officials being prosecuted.