New Delhi: China Phone Maker India Xiaomi Unit has been slapped with Notification of Rs 653 Crore because of the alleged avoidance of import duty, according to the official statement.
Notification of the Cause Show has been slapped on Xiaomi India after recovery of documents during searches in a place that shows the sending of royalties and licenses to US and Chinese companies under contract obligations, the UNI Ministry of Finance said on Wednesday.
Replying to email requests, said Xiaomi spokesman, “in Xiaomi India, we provide the most important to ensure we obey all Indian laws.
We are currently reviewing detailed notifications.
As a responsible company, we will support the authorities with All documentation needed.
“The evidence collected during the Investigation by the Directorate of Income Intelligence (DRI) shows that both Xiaomi India and the contract producers are not included by the number of royalties paid by the company in the value of the recommended goods imported by the company and its contract manufacturers, namely violating the law Customs, the ministry said.
By not adding “royalty and license fees” in the transaction value, Xiaomi India avoids customs, becoming the owner of the benefit of the imported cellphone, parts and components, he added.
“After completizing the investigation by Dri, three shows notifications have been issued for M / S Xiaomi India Technology Private Limited for the request and recovery of assignments of RS.
653 Crore for the period 1 April 2017 to 30 June 2020, under the provisions of Customs Law , 1962, “said the Ministry of Finance.
During the investigation, then it appears that “royalty costs and licenses” are paid by Xiaomi India to Qualcomm USA and for Beijing Xiaomi Mobile Software Co.
Ltd, China (related to Xiaomi India) is not added in the value of goods transactions imported by the company and manufacturer.
Further investigations show that Xiaomi India is engaged in the sale of MI brands and this phone is imported by a company or gather in India by importing mobile components with Indian Xiaomi contract manufacturers.
MI brand phones produced by contract manufacturers are sold exclusively to Xiaomi India, in terms of contract agreements.
Officials Dri have received intelligence input that M / S Xiaomi Technology Limited (Xiaomi India) avoided customs clearance by undervation, after which investigation was initiated by DRI against the company and its contract producers.
During the investigation, the search was made by DRI in the Xiaomi India, and the issue of sending royalty and license for Qualcomm USA and for Beijing Xiaomi Mobile Software Co.
Ltd was revealed.
The statement of the key people of Xiaomi India and the contract producers are recorded, where one of the Directors of Xiaomi India confirmed the payment, he said.