Investigation agencies tightened screws against Chinese companies, different levels of investigation against Xiaomi, Oppo and Vivo

Investigating agencies are finding out whether these companies have hidden their income. An attempt has been made to suppress the income which has helped in tax evasion.

How much damage was done to the local smartphone industry, it is being investigated.

Indian investigative agencies have intensified the investigation against Chinese companies. Indian investigative agencies are currently investigating the Indian operations of China’s top smartphone makers – Xiaomi, Oppo and Vivo. These companies have been accused of lapses and discrepancies in financial filings over the years. Investigative agencies are finding out details about financial irregularities, as well as their business models in India.

Investigating agencies are finding out whether these companies have hidden their income. An attempt has been made to suppress the income which has helped in tax evasion. It is also being investigated whether they took advantage of the dominant position in the market due to which the local smartphone industry has suffered. According to the Times of India report, any opacity in component distribution by these Chinese companies is also being investigated.

Companies have not yet shown profit

There are some things which are of concern to the Government of India and the investigating agencies. Chinese companies have dominance in the Indian smartphone market. These companies have the highest revenue, although so far these companies have not shown profit. These companies claim that they are still incurring losses due to which they do not pay income tax. Apart from this, Indian traders are very less in the distribution chain, which is also being investigated.

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