Notices issued to three Chinese mobile companies for tax evasion: Nirmala Sitharaman

Government is probing cases of alleged tax evasion by three Chinese mobile companies and they have been served notices, Finance Minister Nirmala Sitharaman told Rajya Sabha Replying to supplementary questions during the Question Hour on August 2, the minister said the three companies are Oppo, Vivo India and Xiaomi.

The Department of Revenue Intelligence (DRI) has issued notices to mobile company Oppo for a total customs duty of Rs 4,389 crore and these are for short payment of customs duty on the basis of wrong declaration of certain goods, he said. , “Duty evasion we think is approx ₹2,981 crore”.

“Under valuation of imported goods for the purpose of payment of customs duty, which we believe amounts to evasion of ₹ 1,408 crore,” she said.

He said that they have come voluntarily to deposit ₹450 crore, which is much higher than the demand of ₹4,389 crore.

Regarding other companies, he said that Xiaomi is another mobile company that deals in assembled Mi mobile phones.

“Three show cause notices have been issued to him and he has a duty liability of around Rs 653 crore. For the three show cause notices, he has been issued, he has deposited only ₹46 lakh,” the minister said. Told.

The third company is Vivo India, for which a demand notice of Rs 2,217 crore has also been issued, for which they have deposited Rs 60 crore as voluntary deposit, he informed the House.

“Besides these, the ED is looking into 18 companies that were set up by the same group Vivo and there they have voluntarily remitted ₹62 crore as deposits, but outside India the total sales of the parent company is ₹1.25 lakh. crores.

“Of the total sales of ₹ 1.25 lakh crore, Vivo has transferred a large amount of money through these 18 companies and it is believed that Vivo India, in turn, remitted ₹ 0.62 lakh crore to its parent company which is India out,” Ms. Sitharaman said.