New Delhi: The Directorate of Income Intelligence has accused the avoidance of Customs Duty RS 653 Crore by Xiaomi Technology India and his contract manufacturer and slapped the recovery notice.
After the investigation, DRI accused the Indian arm of Chinese companies that produce and sell other cellphones and gadgets in India “avoid customs in terms of undervation”, a statement issued by the Ministry of Finance said.
“In Xiaomi India, we provide the most important to ensure we comply with all Indian laws.
We are currently reviewing detailed notifications.
As a responsible company, we will support the authorities with all the documentation needed,” Indian spokesman spokesman For Indian Chinese companies arm said.
DRI recently conducted a search in Xiaomi India, which allegedly caused burdensome document recovery, showing that Xiaomi India sent royalties and license fees to Qualcomm USA and to Beijing Xiaomi Mobile Software Ltd, under the contractual obligation.
Payment is not added in the transaction value imported by Xiaomi India and its contract manufacturer.
DRI accused that it is not included in the value that can be assessed is a violation of the Customs Act.
“Investigations carried out by Dri further showed that Xiaomi India was engaged in selling MI brands and this cellphone was imported by Xiaomi India or gathered in India by importing parts and components of Xiaomi Indian phones.
MI brand phones produced by contract manufacturers sold Exclusive to Xiaomi India, in terms of contract agreements, “the official statement said.
Tax demand for the period between April 2017 and June 2020.
In a separate case, last month, the Department of Income Tax has carried out raids on the Chinese cellphone manufacturer Oppo, Vivo and OnePlus.
Dri accused 653 Crore Customs Duty Evasion, a notification of Xiaomi
