New Delhi: Directorate of Revenue Intelligence has alleged customs evasion of Rs 653 crore Xiaomi Technology India And its contract manufacturers and slapped a recovery notice. After an investigation, DRI The Indian arm of a Chinese company that produces and sells mobile phones and other gadgets in India has been accused of “avoiding customs duty through devaluation”. Finance Ministry said.
“At Xiaomi India, we attach utmost importance to ensuring that we comply with all Indian laws. We are currently reviewing the notices in detail. As a responsible company, we provide all necessary documents to Will support the authorities,” said Hath, a spokesman for the Chinese company’s Indian. DRI recently conducted searches in Xiaomi India, which allegedly led to the recovery of incriminating documents, indicating that Xiaomi India Qualcomm was sending royalties and license fees to the USA and Beijing Xiaomi Mobile Software Co. Ltd., under contractual obligation.
The payment was not being added to the transaction value of goods imported by Xiaomi India and its contract manufacturers. The DRI has alleged that not including these in the assessable value is a violation of the Customs Act. “The investigation conducted by DRI has revealed that Xiaomi India is engaged in the sale of Mi brand mobile phones and these mobile phones are either imported by Xiaomi India or mobile phone parts and components by Xiaomi India’s contract manufacturers. The Mi brand mobile phones manufactured by contract manufacturers are sold exclusively to Xiaomi India, the official statement said.
The tax demand is for the period between April 2017 and June 2020.
In a separate case last month, the Income Tax Department conducted raids against Chinese mobile maker Oppo. Vivo and OnePlus.
“At Xiaomi India, we attach utmost importance to ensuring that we comply with all Indian laws. We are currently reviewing the notices in detail. As a responsible company, we provide all necessary documents to Will support the authorities,” said Hath, a spokesman for the Chinese company’s Indian. DRI recently conducted searches in Xiaomi India, which allegedly led to the recovery of incriminating documents, indicating that Xiaomi India Qualcomm was sending royalties and license fees to the USA and Beijing Xiaomi Mobile Software Co. Ltd., under contractual obligation.
The payment was not being added to the transaction value of goods imported by Xiaomi India and its contract manufacturers. The DRI has alleged that not including these in the assessable value is a violation of the Customs Act. “The investigation conducted by DRI has revealed that Xiaomi India is engaged in the sale of Mi brand mobile phones and these mobile phones are either imported by Xiaomi India or mobile phone parts and components by Xiaomi India’s contract manufacturers. The Mi brand mobile phones manufactured by contract manufacturers are sold exclusively to Xiaomi India, the official statement said.
The tax demand is for the period between April 2017 and June 2020.
In a separate case last month, the Income Tax Department conducted raids against Chinese mobile maker Oppo. Vivo and OnePlus.
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