The central government is in action on the custom duty evasion of Chinese mobile companies OPPO, Vivo and Xiaomi. Finance Minister Nirmala Sitharaman told in the Rajya Sabha on Tuesday (August 2) that the government is keeping an eye on it. The DRI (Department of Revenue Intelligence) recently sent a notice to OPPO for evading custom duty totaling Rs 4,389 crore. The Finance Minister told the Rajya Sabha that the Chinese company had given wrong information about some goods, on which custom duty of about Rs 2,981 crore was to be levied.
At the same time, customs duty of Rs 1,408 crore was evaded due to undervaluation of imported goods. The Finance Minister said that he came voluntarily to deposit customs duty of Rs 450 crore, which is much less than Rs 4,389 crore.
Notices sent to Vivo, Xiaomi
FM Nirmala Sitharaman also informed the Parliament about tax evasion by other Chinese companies Xiaomi and Vivo. Three show cause notices have been sent by the government to Xiaomi India. The company has evaded custom duty of Rs 653 crore, against which Xiaomi has deposited only Rs 46 lakh so far.
At the same time, a notice was sent to Vivo India for depositing custom duty of Rs 2,217 crore. The company has so far deposited only Rs 60 crore voluntarily.
On Vivo India’s custom duty evasion as well as money laundering, the Finance Minister said in Parliament that the Enforcement Directorate is probing 18 of Vivo’s subsidiaries. The Chinese company has voluntarily deposited Rs 62 crore, while Vivo’s parent company has sold Rs 1.25 lakh crore outside India.
The Finance Minister told the Rajya Sabha that Vivo has transferred huge amounts of funds outside the country through 18 fake companies. The company has transferred around Rs 62,000 crore to the parent company based in China.
OPPO will have to pay Rs 4403 crore
Giving information in writing in Parliament, Nirmala Sitharaman said that OPPO Mobile India Ltd. A show cause notice has been sent to DRI for depositing Rs 4,403.88 crore. At the same time, five cases of evasion of customs duty have been registered on another Chinese company Xiaomi Technology India.
The Finance Minister said that between 2019 and 2022, the Central Board of Indirect Taxes and Customs (CBIC) has registered such taxes against 43 other companies.