Chinese companies evading tax: Oppo evaded customs duty of Rs 4389 crore; This is the fourth case after Xiaomi, Vivo, Huawei.
After Xiaomi, Vivo and Huawei, another Chinese smartphone company has come under scrutiny. The Directorate of Revenue Intelligence (DRI) has detected evasion of custom duty worth Rs 4,389 crore by Oppo India. The company committed tax evasion by giving wrong information about imports.
Evidence found of knowingly giving false information
The Finance Ministry said on Wednesday, Oppo Mobiles is a subsidiary of China’s Guangdong Oppo Mobile Telecommunications Corporation. Oppo sells phones from OnePlus and Realme brands. During the investigation, the DRI had raided several premises of Oppo India and the houses of the management officials. During this, evidence was found of knowingly giving wrong information about imported goods for making mobiles.
royalty was being sent to china
Through these, the company took advantage of duty exemption of Rs 2,981 crore. The royalty and license fee paid by Oppo violated Customs Act rules. The company was not adding it to the value of the imported goods. Through this the company evaded duty of Rs 1,408 crore.
Vivo should give bank guarantee of 950 crores, only then accounts will be opened: High Court
Delhi High Court has told Vivo Mobile India, if it wants to operate 119 bank accounts frozen by the Enforcement Directorate (ED), it will have to furnish a bank guarantee of Rs 950 crore. Also, a balance of Rs 251 crore will have to be kept in these accounts at all times. On July 5, the ED had raided 48 locations across the country of Vivo and 23 companies linked to it in connection with the money laundering probe.
