Three Chinese Mobile Phone Companies Received Tax Evasion Notices, According to FM Sitharaman

Finance Minister Nirmala Sitharaman told Rajya Sabha on Tuesday that the government is investigating into allegations of tax avoidance by three Chinese mobile phone companies and that letters have been sent to them. The three businesses are Oppo, Vivo India, and Xiaomi, the minister stated in response to a follow-up question during the Question Period.

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She added that “duty evasion we think is about Rs 2,981 crore” and that “the Department of Revenue Intelligence (DRI) has issued a notice to mobile company Oppo for total customs duty of Rs 4,389 crore and these are on the grounds of misdeclaration of certain goods leading to a short payment in customs duty.”

In contrast to the demand for Rs 4,389 crore, she claimed they had come forward voluntarily to deposit Rs 450 crore.

She mentioned Xiaomi as another mobile company that deals with constructed MI mobile phones when speaking of the other businesses. “They have received three show-cause letters, and their estimated duty due totals roughly Rs 653 crore. They have only deposited Rs. 46 lakh for the three show cause notices that they have issued “added the minister.

She informed the House that Vivo India is the third business, for which a demand notice for Rs 2,217 crore had also been issued and for which they had made a voluntary deposit of Rs 60 crore.

In contrast to the demand for Rs 4,389 crore, she claimed they had come forward voluntarily to deposit Rs 450 crore.

She mentioned Xiaomi as another mobile company that deals with constructed MI mobile phones when speaking of the other businesses. “They have received three show-cause letters, and their estimated duty due totals roughly Rs 653 crore. They have only deposited Rs. 46 lakh for the three show cause notices that they have issued “added the minister.

She informed the House that Vivo India is the third business, for which a demand notice for Rs 2,217 crore had also been issued and for which they had made a voluntary deposit of Rs 60 crore.