Tax evasion in Chinese products..!? How much loss..?!

Chinese companies, which are India's leading smartphone brands, have been caught evading income tax one after another, while Chinese credit processing companies continue to cheat and steal people's money. The central tax department has found a significant difference in the value of imported goods in the data received from india and China. This means that domestic companies importing goods from china have been investigating the under-reporting of prices. India's invoiced imports are significantly lower than the price of exports from china to India. This can make a huge difference in taxation.
In the last week of September, customs authorities issued notices to 32 importers suspected of evading duty of around Rs 16,000 crore through under-invoicing from april 2019 to december 2020. Investigations in this regard revealed that under-invoicing is being done in many places, especially in China. It has been found that cases of excessive under-invoicing have taken place on imported goods. Following this, the officials of the tax department said that they have already sent notices to 32 domestic importers for suspected tax evasion to the tune of Rs 16,000 crore. It has also been revealed that imports falling under the category of under-invoicing are mostly electronics, gadgets, and metals.Usually, the goods are undervalued and a receipt is submitted to reduce the customs duty on goods imported from abroad. Recently, the central government has reduced the duty on domestically manufactured electronic goods while increasing the price of imported goods. In this situation, the central government has incurred a tax loss due to the reduction of customs duty on imported goods. india imported goods worth $79.16 billion from china in the first nine months of 2022, according to official data. On the other hand, according to data from China's General Administration of Customs, exports to india were worth $89.99 billion during the same period.Through this, the importing companies in india have evaded customs duty on goods worth about 10 billion dollars. What is important is that this value gap is widening every year. India's import from china in the calendar year 2019 was $68.35 billion, while according to Chinese data it was $74.92 billion. A gap of about $6 billion, similarly increased to $8 billion in 2020 and $10 billion in 2021.
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Sowmiya Sriram

14/11/2022 09:32 PM