Big problems have arisen for Chinese mobile manufacturing companies working in India. The central government is monitoring cases of tax evasion by three big Chinese mobile companies – Oppo, Vivo India and Xiaomi.
Big problems have arisen for Chinese mobile manufacturing companies working in India. (Representational Image)
Big problems have arisen for Chinese mobile manufacturing companies working in India. Central government three big Chinese mobile companies- Oppo, keeping an eye on cases of tax evasion by Vivo India and Xiaomi. The government has also issued notices to these companies. The lawsuits against these companies range from income tax evasion, customs-related violations to fraud and money laundering.
Government took action against companies
Union Finance Minister Nirmala Sitharaman told Parliament on Tuesday that the Department of Revenue Intelligence (DRI) has issued a notice of customs duty totaling Rs 4,389 crore to Oppo. The reason for this is that he has not given information about some goods, due to which there has been a discrepancy in payment of duty. Sitharaman said that duty evasion is about Rs 2,981 crore.
Apart from this, the ED has raided more than 40 places, including Uttar Pradesh, Madhya Pradesh and some southern states. He has done this raid in relation to the money laundering case against the Chinese smartphone manufacturing company Vivo.
Earlier in July, the ED had blocked 119 bank accounts belonging to Vivo India. In the investigation of money laundering, he had received crores of rupees in these accounts. The Enforcement Directorate had called it a serious economic offence. In response, the mobile company had approached the Delhi High Court. He had sought permission from the court to operate his bank accounts. Then, the court has allowed the company to operate the bank accounts on giving a bank guarantee of Rs 950 crore to the company.
Action against Vivo and Xiaomi
Recently, the Directorate of Revenue Intelligence (DRI) said again on Wednesday that it has caught the evasion of custom duty of about Rs 2,217 crore by Vivo Mobile India.
Talking about Xiaomi, three showcase notices have been issued to the company and there is a duty liability of about Rs 653 crore on it. Sitharaman had said on Tuesday that the Chinese company has deposited only Rs 46 lakh out of this. The ED had seized Rs 5,551.27 crore of Xiaomi Technology India Pvt Ltd at the end of April. The ED took this action under the FEMA Act.