New Delhi: The Enforcement Directorate (ED) on Tuesday conducted searches at several locations across the country against Chinese mobile phone maker Vivo and its distributors in India.
This is the second major action against major Chinese phone makers after the agency attached bank deposits worth over Rs 5,500 crore. Xiaomi In April this year for alleged violation of the Foreign Exchange Management Act.
While Xiaomi is facing investigation for alleged transfer of funds outside the country without accounting for substantial income and profits, Vivo is facing investigation under the Prevention of Money Laundering Act and for certain security issues. in which some Chinese nationals were allegedly involved. Fake ID card.
The Income Tax Department had seized several documents related to Xiaomi, Oppo, Vivo and their distributors during a search operation conducted in December. The agency had received details of alleged tax evasion on income of over Rs 6,500 crore. The IT department had also raided Chinese telecom company Huawei in February and claimed to have found alleged manipulation of the ledger to reduce taxable income in India.
Tuesday’s raids were spread across Delhi, UP, Meghalaya and Maharashtra, A Vivo India spokesperson was quoted as saying by a news agency, “Vivo is cooperating with the authorities to provide all necessary information. As a responsible corporate, we are committed to fully complying with the laws.”
The ED probe against Vivo is based on an FIR registered by the Delhi Police against a distributor of the company in Jammu and Kashmir in connection with forgery of identity documents of certain Chinese nationals. According to ED sources, the Chinese phone major is allegedly making huge remittances to China, exaggerating the cost of consultancy and software services while evading taxes on income generated in India.
Several central agencies, including the IT department, have been involved in the investigation of cases of Chinese fintech and telecom companies over the years. In view of this, the action has intensified with the banning of many Chinese gaming companies. Ladakh Standoff on Line of Actual Control and Galwan Valley conflict.
This is the second major action against major Chinese phone makers after the agency attached bank deposits worth over Rs 5,500 crore. Xiaomi In April this year for alleged violation of the Foreign Exchange Management Act.
While Xiaomi is facing investigation for alleged transfer of funds outside the country without accounting for substantial income and profits, Vivo is facing investigation under the Prevention of Money Laundering Act and for certain security issues. in which some Chinese nationals were allegedly involved. Fake ID card.
The Income Tax Department had seized several documents related to Xiaomi, Oppo, Vivo and their distributors during a search operation conducted in December. The agency had received details of alleged tax evasion on income of over Rs 6,500 crore. The IT department had also raided Chinese telecom company Huawei in February and claimed to have found alleged manipulation of the ledger to reduce taxable income in India.
Tuesday’s raids were spread across Delhi, UP, Meghalaya and Maharashtra, A Vivo India spokesperson was quoted as saying by a news agency, “Vivo is cooperating with the authorities to provide all necessary information. As a responsible corporate, we are committed to fully complying with the laws.”
The ED probe against Vivo is based on an FIR registered by the Delhi Police against a distributor of the company in Jammu and Kashmir in connection with forgery of identity documents of certain Chinese nationals. According to ED sources, the Chinese phone major is allegedly making huge remittances to China, exaggerating the cost of consultancy and software services while evading taxes on income generated in India.
Several central agencies, including the IT department, have been involved in the investigation of cases of Chinese fintech and telecom companies over the years. In view of this, the action has intensified with the banning of many Chinese gaming companies. Ladakh Standoff on Line of Actual Control and Galwan Valley conflict.