Revenue authorities are probing tax evasion to the tune of Rs 7,300 crore by Chinese mobile companies Oppo, Vivo India and Xiaomi, finance minister Nirmala Sitharaman told Rajya Sabha on Tuesday.
“A Show Cause Notice, inter-alia, demanding Rs 4403.88 crore has been served on Oppo Mobiles India Ltd. based on the investigation conducted by the Directorate of Revenue Intelligence (DRI),” Sitharaman said in a written reply to a question asked by BJP MP Sushil Kumar Modi.
Five cases of customs duty evasion have been booked against Xiaomi Technology India, she said.
Further, an investigation by the Enforcement Directorate revealed that Vivo Mobiles India Pvt Ltd has remitted an amount of Rs 62,000 crore or about 50% of the total sales, mainly to China and its controlled territories from July 2017 to March 2021, the minister said.
“During the period 2019 to 2022, in respect of Central Board of Indirect Taxes & Customs, cases against 43 other such companies have been booked. As regards to Central Board of Direct Taxes (CBDT), Investigation Directorates have undertaken search & seizure actions in cases of 5 groups pertaining to the telecom sector, in which tax evasion has been detected,” Sitharaman said.
Replying to a supplementary question of Modi during question hour, the minister said DRI notice to Oppo for total customs duty of Rs 4,389 crore and these are on the grounds of misdeclaration of certain goods leading to a short payment in customs duty. While the customs duty evasion is about Rs 2,981 crore and evasion of Rs 1,408 crore is on account of undervaluation of imported goods for payment of customs duty.
“‘The approximate duty liability (of Xiaomi, which deals with assembled MI mobile phones) there is about Rs 653 crore,” the minister said.
For Vivo India, a demand notice has been issued for Rs 2,217 crore for which it has deposited Rs 60 crore voluntarily, she informed the House.