Custom duty evasion of Rs 653 crore by Xiaomi, notice issued for recovery

After getting information about evasion of duty through undervaluation, DRI started investigation which revealed about evasion of customs duty

Xiaomi India accused of evasion of customs duty

A case of evasion of customs duty of Rs 653 crore has come to light on Xiaomi India, a smartphone maker named Mi and Redmi. Giving information about this today, the Finance Ministry said that notices have been issued for demand and recovery of fees from the company. This case is from 1 April 2017 to 30 June 2020.

Tax evasion under the guise of undervaluation

The Finance Ministry today informed that an intelligence input revealed that the company was evading customs duty through undervaluation. After the information, the Directorate of Intelligence started the investigation. Documents found by DRI during investigation revealed that Xiaomi India, Qualcomm USA under contractual obligation and Xiaomi Mobile Software Co in Beijing. Ltd. royalty and license fee. Statements of key persons of Xiaomi India and its contract manufacturers were recorded, during which one of the directors of Xiaomi India has confirmed the said payment.

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