Responding to supplementaries during the Question Hour, Nirmala Sitharaman said the three companies are Oppo, Vivo India, and Xiaomi.
New Delhi: Finance Minister Nirmala Sitharaman on Tuesday informed Rajya Sabha today. “The government is looking into cases of alleged tax evasion by three mobile companies in China and notices have been given to them.”
Responding to supplementaries during the Question Hour, Nirmala Sitharaman said the three companies are Oppo, Vivo India, and Xiaomi.
The Department of Revenue Intelligence (DRI) has issued a notice to mobile company Oppo for total customs duty of ₹ 4,389 crore and these are on the grounds of misdeclaration of certain goods leading to a short payment in customs duty, the BJP leader said, adding, “duty evasion we think is about ₹ 2,981 crore”.
The FM further said, “Undervaluation of imported goods for payment of customs duty, that we think is an evasion of ₹ 1,408 crores.”
Sitharaman said, “voluntarily they have come about to deposit ₹ 450 crores, much against the demand of ₹ 4,389 crores”.
Concerning other companies, she said Xiaomi is another mobile company that deals with assembled MI mobile phones.
“Three show-cause notices have been issued to them and the approximate duty liability there is about ₹ 653 crore. For the three show cause notices, they have been issued, they have deposited only ₹ 46 lakh,” the minister added.
The third company is Vivo India, for whom also there is a demand notice issued for ₹ 2,217 crores for which they have deposited ₹ 60 crores as voluntary deposit, she informed the Upper House.
Other than this, the Enforcement Directorate is looking at 18 companies that were established by the same group Vivo and there they have voluntarily remitted ₹ 62 crores as a deposit but the parent company outside of India has a total sales of 1.25 lakh crore.
The Finance Minister also said, “Of the ₹ 1.25 lakh crore total sales, Vivo has transferred through these 18 companies huge amounts of funds and it is believed that Vivo India has, in turn, remitted 0.62 lakh crore to its parent company which is outside India.”
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