Notice issued to three Chinese mobile companies for tax evasion: Sitharaman

NEW DELHI: The government is investigating alleged tax evasion by three Chinese mobile companies and has issued a notice to them, Finance Minister Nirmala Sitharaman informed Rajya Sabha on Tuesday.
Answering supplementary questions during question period, the minister said that the three companies are Oppo, Vivo India And Xiaomi.
The Department of Revenue Intelligence (DRI) has fined mobile company Oppo a total of Rs. 4,389 crore in customs duty and it is based on mis-declaration of certain goods, leading to short payment of customs duty, she added. , “We think the duty evasion is around Rs 2,981 crore”.
“Undervaluation of imported goods for the purpose of payment of customs duty, which we feel is a theft of Rs 1,408 crore,” she said.
She said that they voluntarily paid Rs. 450 crores have come to be deposited, which is Rs. 4,389 crore against the demand.
About other companies, she said that Xiaomi is another mobile company that deals with assembled MI mobile phones.
“They have been issued three show-cause notices and have a duty liability of around Rs 653 crore. For the three show-cause notices they have been issued, they have deposited only Rs 46 lakh,” the minister said.
There is a third company Vivo India, for whom also Rs. 2,217 crore demand notice has been issued for which they have demanded Rs. 60 crore as voluntary deposits, she informed house.
“Besides, the ED is looking into 18 companies which were set up by the same group Vivo and where they have voluntarily remitted Rs 62 crore as deposits but the parent company outside India has a total sales of Rs 1.25 lakh crore.
“Out of the total sales of Rs 1.25 lakh crore, Vivo has transferred a huge amount of funds through these 18 companies and it is believed that Vivo India in return has remitted 0.62 lakh crore to its parent company which is outside India,” Seetharaman said.


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