Notices issued to three Chinese mobile companies for tax evasion: Sitharaman.

New Delhi: Finance Minister Nirmala Sitharaman said in the Rajya Sabha on Tuesday that the government is investigating alleged tax evasion cases on behalf of three Chinese mobile phone companies. Notices have been issued to them in this regard. Sitharaman, while answering supplementary questions during the Question Hour, said that notices have been issued to three Chinese companies Oppo, Vivo India and Xiaomi. He said that the Department of Revenue Intelligence (DRI) has issued a notice to mobile phone company Oppo for a total customs duty of Rs 4,389 crore. He said that as per an estimate the tax evasion is about Rs 2,981 crore.

The Finance Minister said, “We believe that there is tax evasion of Rs 1,408 crore due to undervaluation of imported products for payment of customs duty.” Much less than the demand of Rs.

Referring to other companies, he said that Xiaomi is another mobile phone company that deals with ‘assembled’ Mi mobile phones.

“Three show cause notices have been issued to him and he has a customs duty liability of around Rs 653 crore,” the minister said. Only Rs 46 lakh has been deposited on three show cause notices issued to him.

Sitharaman said the third company is Vivo India, for which a ‘demand notice’ of Rs 2,217 crore has been issued and she has voluntarily deposited Rs 60 crore. Besides these, the Enforcement Directorate (ED) is also looking at 18 companies that were set up by the same group, Vivo, he said.

He said that out of the total sales of Rs 1.25 lakh crore, parent company Vivo transferred a large amount of money through these 18 companies.