Huawei by ET

Despite falling revenues, Huawei India sent Rs 750 crore to parent company: report
The I-T department has accused Huawei's Indian unit of repatriating large amounts to the parent company in China to reduce its taxable income here

Huawei repatriated ₹750 crore, even when its revenue was reducing  drastically | Communications Today
Image: Communications Today

The I-T department has now accused Huawei’s Indian unit of repatriating large amounts to the parent company, a news report said.

Huawei Telecommunications India repatriated nearly Rs 750 crore to its Chinese parent company in the form of dividends for at least two financial years to reduce its taxable income in India “even when its revenue was reducing drastically”, the I-T department said, according to a report in The Economic Times.

The I-T department had frozen bank accounts of Huawei India in February this year after it found alleged manipulation of account books for reducing taxable income in the nation after conducting raids at its premises.

Huawei had denied any wrongdoing and in its petition to the Delhi High Court, it said that the attachment of the accounts had affected the company’s business.

The I-T department froze the bank accounts of the company in February after conducting raids at its premises and accusing it of evading taxes. In the Delhi High Court in April stayed the attachment of the company’s accounts based on a plea from Huawei India and sought the I-T department’s response. The department filed its charges against the company in responses sent last week, reported Economic Times.

In its response, the I-T department defended the attachment and called Huawei’s argument “a ploy raised on frivolous grounds just to obstruct departmental proceedings and to avoid consequential payment of taxes.” The department asserted that it had evidence that implicated the business.

The department further stated that it was “impossible to ascertain the veracity of the income declared by the company” because Huawei India had not “yet to date” produced its books of accounts.

Earlier Investigation

Along with other Chinese tech firms like Xiaomi and Vivo, Huawei is one of the businesses under intense scrutiny in India.

The Enforcement Directorate claimed that during its investigation of Chinese smartphone manufacturer Vivo, it discovered that the business sent about half of its revenue, or Rs 62,476 crore, to China in order to avoid paying taxes there. In accordance with anti-money laundering legislation, ED has also seized kg of gold, Rs 465 crore in funds, and Rs 73 lakh in cash.

“ED has carried out searches at 48 locations across the country belonging to VIVO Mobiles India Pvt. Ltd. and its 23 associated companies, and seized a balance of Rs. 465 Crore lying in 119 bank accounts, including FDs of 66 Crore of Vivo India, 2kg gold bars, and Rs. 73 Lakh cash,” the agency said.