Notice issued to Oppo, Vivo and xiaomi for Tax evasion...
Chinese companies dominate the indian smartphone market. There are mainly three names prominent among them, which include xiaomi, Vivo and Oppo. These companies are often in discussion about their phones and their phones are also the best seller in the indian market, but recently all these companies are on the target of the government of india because the names of all these companies have come up on charges of tax evasion, Finance minister Nirmala Sitharaman has also put forth the side of the government in this matter.
DRI has caught custom theft of 2217 crores of Chinese mobile maker Vivo. This theft was caught after a raid in the year 2020, after which a show cause notice was also issued to the company in june 2021. In this raid, DRI also recovered many documents related to tax evasion. This showed how Vivo india was deliberately importing the parts used in making mobiles but was giving wrong information to the government so that custom duty could be avoided.
Finance Minister's statement
In fact, in the Rajya Sabha, Finance minister Nirmala Sitharaman told that the government is monitoring the cases related to tax evasion of all three Chinese companies. She told that notices have been sent to Oppo, Vivo india and xiaomi in this matter and preparations are on for further action. According to the information, Oppo is accused of tax evasion of Rs 4,389 crore.
There are also allegations against Xiaomi
Nirmala Sitharaman has informed about xiaomi, the second largest mobile company in india, that three times notices have been sent to the company. She told that there is a duty liability of about Rs 653 crore on Xiaomi. It is worth noting that xiaomi deals in phones of redmi, Poco and MI (now Xiaomi) brands in india and these phones are also considered to be very popular in the market.
Significantly, all these companies have made unprecedented expansion in their business in the last seven to eight years. Due to production in india, these companies also get many facilities from the governments. Despite this, these companies have evaded tax with the government of india, due to which strict action has been taken against these companies.
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