Theft of this Chinese company was caught, Income Tax Department demanded 653 crore tax
The Income Tax Department also searched the premises of another Chinese mobile company Oppo. The department had said last week that a penalty of up to Rs 1000 crore can be imposed on these two sugar companies.
Sunil Shukla 
The Directorate of Revenue Vigilance (DRI) has issued three show-cause notices to Chinese mobile company Xiaomi Technology India Private Limited (Xiaomi India). These notices are related to tax evasion of Rs 653 crore. This information was given in an official statement.
According to the statement issued on the PIB, during the investigation, the DRI recovered several documents by conducting a search operation at Xiaomi India and its manufacturers. These documents revealed that Xiaomi India was evading custom duty by resorting to undervaluation. Apart from this, the company was sending royalties and license fees to Qualcomm USA and Beijing Xiaomi Software Co due to contractual obligations.
The DRI also searched the factories of India FIH and Dixon Technologies, the Indian arm of Foxconn. Both these companies manufacture on contract for Xiaomi. It was found in the investigation that Xiaomi, which sells smartphones under the MI brand name, either imports them from outside or assembles the parts from outside. In this, an attempt has been made to save customs duty by showing less value of goods coming from outside.
The DRI found that Xiaomi and its manufacturing companies evaded tax worth Rs 653 crore in three years in this manner. The DRI has demanded recovery of the same in the notice. This case is from 01 April 2017 to 30 June 2020.
It is noteworthy that the Income Tax Department also searched the premises of another Chinese mobile company Oppo. The department had said last week that a penalty of up to Rs 1000 crore can be imposed on these two sugar companies. Although the Income Tax Department did not reveal the names of both the companies then, but the names of Xiaomi and Oppo had come to the fore.
