The revenue department’s intelligence unit has launched an investigation into alleged collusion between select banks and ATM service providers to avoid payment of value added tax (VAT) and wrongful claim of tax credit. 

The Directorate General of Goods and Services Tax Intelligence (DGGSTI) shot off letters to State Bank of IndiaBSE 1.42 %, Punjab National BankBSE 0.94 %, Canara BankBSE -0.69 %, Syndicate BankBSE 0.27 % and some of their ATM service providers such as NCR, AGS Transact, Tata Payments Solutions, Hitachi on the issue. 

ET has seen a copy of a letter issued by DGGSTI’s Kochi office to an ATM service provider on March 12. “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,” the letter said. #casansaar (Source - Economic Times)