(This article is written by Alar)
Popular smartphone brands Oppo, Vivo and Xiaomi have faced big problems in India after the tax evasion allegations. Union Finance Minister Nirmala Sitharaman informed Rajya Sabha on Tuesday that notices had been issued to these three Chinese smartphone makers.
Companies have received notices from the Tax Intelligence Department (DRI) for customs evasion. The Minister of Finance further stated that these three companies had neglected their obligations to pay the appropriate taxes. She was responding to a question posed by BJP MP Sushil Modi in the Rajya Sabha. The development has attracted national attention.
The Finance Minister said: “The Department of Tax Intelligence (DRI) has issued a notice to Oppo, the mobile phone company, for a total customs duty of Rs 4,389 crore, and these are based on a declaration miscarriage of certain goods, resulting in a short payment in customs duty. This customs evasion, according to us, is around Rs 2,981 crores”. “In addition to this, the ED is looking at 18 companies which were set up by the same Vivo group and there they voluntarily handed over INR 62 crore in deposit but the parent company outside India has a turnover total of 1.25 lakh crore,” she added. .
Following Vivo India’s denial of money laundering allegations and the denial of the financial terrorism charge brought against it by the Law Enforcement Branch (ED) of the Delhi High Court, a statement was made by Sitharaman regarding Xiaomi in which she stated that five customs evasion cases had been filed against the Indian branch of the company in the case involving Xiaomi.
She said: “Xiaomi, which is the other technology company, the mobile phone company, which I believe deals with assembled Mi brand mobile phones. Three demo notices have been issued to them, and their approximate tax liability is around Rs 653 crore.For the three show cause notices that have been issued, they only filed Rs 46 lakh.And, the third company is Vivo India, for whom there is also a claim notice given for Rs 2,217 crore, against which they deposited Rs. 60 crore as a voluntary deposit”.
It is relevant to note that Vivo was one of the top 10 smartphone manufacturers in the first quarter of 2015, with a global market share of 2.7%. According to the number of patent applications published under the PCT system in 2021, Oppo was ranked eighth in the world by the World Intellectual Property Indicators (WIPO) in its annual review.