Chennai Zonal Unit of the Directorate General of Central Excise Intelligence Conducts Investigation under Summons Against 16 Insurance Companies Engaged in Providing Motor-Vehicle Insurance Policies, for Wrongly Availing Cenvat Credit to the Tune of 1200-2500 Crore on the Bogus Invoices of the Car Dealers https://www.taxtmi.com/news?id=14852 Investigation alleges insurers, appointed as preferred providers by car manufacturers, used dealer-issued invoices for nonexistent services to wrongfully claim Cenvat Credit. Such arrangements conflict with IRDA regulations that restrict who may sell vehicle insurance and cap commissions; the invoices therefore are not permissible under the CENVAT Credit Rules, 2004 and the Service Tax Rules, 1994. Voluntary statements corroborate the scheme and the estimated incorrect credit is substantial. en-us Tue, 11 Aug 2015 09:50:05 +0530 Tue, 11 Aug 2015 09:50:05 +0530 TaxTMI RSS Generator Chennai Zonal Unit of the Directorate General of Central Excise Intelligence Conducts Investigation under Summons Against 16 Insurance Companies Engaged in Providing Motor-Vehicle Insurance Policies, for Wrongly Availing Cenvat Credit to the Tune of 1200-2500 Crore on the Bogus Invoices of the Car Dealers https://www.taxtmi.com/news?id=14852 Investigation alleges insurers, appointed as preferred providers by car manufacturers, used dealer-issued invoices for nonexistent services to wrongfully claim Cenvat Credit. Such arrangements conflict with IRDA regulations that restrict who may sell vehicle insurance and cap commissions; the invoices therefore are not permissible under the CENVAT Credit Rules, 2004 and the Service Tax Rules, 1994. Voluntary statements corroborate the scheme and the estimated incorrect credit is substantial. News - Tue, 11 Aug 2015 09:50:05 +0530 https://www.taxtmi.com/news?id=14852