Skip to content
Pangu

Pangu

  • Home
  • Xiaomi phones
  • Pangu jailbreak
  • Pangu firmware
  • Telecoms finance
  • Accounts
  • Terms and Conditions
  • Privacy Policy
Watch Online
  • Home
  • Xiaomi phones
  • Xiaomi, Oppo Could Face 1k Cr Fine For Tax Offense: IT Department | Latest India News
  • Xiaomi phones

Xiaomi, Oppo Could Face 1k Cr Fine For Tax Offense: IT Department | Latest India News

Kelly Choos December 31, 2021 3 min read

New Delhi: More than a week after searches were carried out on major Chinese cellphone makers Xiaomi and Oppo, the income tax department said on Friday that the two companies had failed to comply with the regulatory disclosure mandate. transactions and could face ??1,000 crore penalty.

The IT department had conducted India-wide search and seizure operations on December 21 in the case of some foreign-controlled mobile communications and mobile phone manufacturing companies and their associates in Karnataka, Tamil Nadu, Assam, West Bengal, Andhra Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Bihar, Rajasthan and Delhi RCN.

In a statement issued on Friday, the Central Commission for Direct Taxes (CBDT), the parent body of the IT department, said: “The research action revealed that two large companies (referring to Oppo and Xiaomi) have carried out payments under the royalty, to and on behalf of its group companies located abroad, which represents more than ??5,500 crores.

“The claim for such expenses does not seem appropriate in light of the facts and evidence gathered during the search,” he said.

“It is understood that these two companies did not comply with the regulatory mandate prescribed by the Income Tax Act 1961 for the disclosure of transactions with associated companies. Such forfeiture makes them liable to criminal prosecution under the Income Tax Act, 1961, the amount of which could be in the order of more than ??1,000 crore, ”the CBDT statement added.

Subsequently, the investigation revealed the modus operandi of purchasing components for the manufacture of mobile phones as well as the introduction of foreign funds into the books of the Indian company, but it turns out that the source of such funds are questionable in nature, allegedly without creditworthiness of the lender. “The amount of these loans is approximately ??5,000 crore, on which interest charges were also claimed, ”he added.

The department added that it had come across evidence regarding inflation in spending, payments on behalf of associated companies, etc., which led to the reduction in taxable profits of the Indian mobile phone manufacturing company. “Such an amount could be greater than ??1,400 crore, ”he added.

Requests to companies went unanswered until the time of going to press.

The tax authorities also found that one of the companies was using the services of another entity located in India but did not comply with the withholding tax provisions introduced since April 1, 2020 and that the amount of TDS liability in this respect could be around ??300 crores.

Another mobile phone company was also raided by IT on December 21, whose name, without disclosing the name, the department said “it was detected that control of the company’s affairs was largely managed. from a neighboring country “.

“The Indian directors of said company admitted that they had no role in the management of the company and lent their names for the post of director for the purposes of the same name. Evidence has been gathered on an attempt to transfer all of the company’s reserves up to ??42 crore outside India with no payment of taxes owed, ”added the CBDT.


Source link

Related posts:

  1. Xiaomi and Oppo develop their very own 5G chips for smartphones: report
  2. Redmi’s gaming telephone with Dimensity 1200 might launch this month
  3. Xiaomi will launch extra Mi 11 telephones in India on April 23
  4. Android 11 rollout goes international for Asus Zenfone 7 and Zenfone 7 Professional

Continue Reading

Previous: Xiaomi: launches a series of Master Classes in mobile photography
Next: Weekly poll: what do you think of the Xiaomi 12 series?

Related Stories

Karnataka HC allows Xiaomi to access bank overdrafts to make payments
3 min read
  • Xiaomi phones

Karnataka HC allows Xiaomi to access bank overdrafts to make payments

May 12, 2022
ED Xiaomi investigation: China calls for a fair and non-discriminatory environment for its businesses in India
3 min read
  • Xiaomi phones

ED Xiaomi investigation: China calls for a fair and non-discriminatory environment for its businesses in India

May 9, 2022
Flipkart Big Saving Days Ends May 8: Check Smartphone Discounts & Deals | News
2 min read
  • Xiaomi phones

Flipkart Big Saving Days Ends May 8: Check Smartphone Discounts & Deals | News

May 7, 2022

Categories

app store ios device ios ios ios jailbreak iphone ipad ipod touch jailbreak ios jailbreak tool operating system pangu jailbreak pangu team running ios united states version ios xiaomi mi

  • Accounts
  • Pangu firmware
  • Pangu jailbreak
  • Telecoms finance
  • Xiaomi phones

Recent posts

Recent Posts

  • 3 Ways to Manage Your Finances

  • Karnataka HC allows Xiaomi to access bank overdrafts to make payments

  • Gambia: World Bank supports government with $20 million to build fiscal resilience

  • Zedcrest Advocates for Prosperity Inclusion for Africans in the Diaspora – TechEconomy.ng

  • ED Xiaomi investigation: China calls for a fair and non-discriminatory environment for its businesses in India

  • Mukesh Ambani’s Reliance Industries steps up retail and renewable energy M&As

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • August 2019
  • June 2019
  • April 2019
  • February 2019
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • May 2018
  • April 2018
  • March 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • August 2014
  • July 2014
  • June 2014
  • January 2014
  • November 2013
  • February 2013
  • December 2012

You may have missed

Karnataka HC allows Xiaomi to access bank overdrafts to make payments
3 min read
  • Xiaomi phones

Karnataka HC allows Xiaomi to access bank overdrafts to make payments

May 12, 2022
Gambia: World Bank supports government with $20 million to build fiscal resilience
3 min read
  • Telecoms finance

Gambia: World Bank supports government with $20 million to build fiscal resilience

May 12, 2022
Zedcrest Advocates for Prosperity Inclusion for Africans in the Diaspora – TechEconomy.ng
3 min read
  • Telecoms finance

Zedcrest Advocates for Prosperity Inclusion for Africans in the Diaspora – TechEconomy.ng

May 10, 2022
ED Xiaomi investigation: China calls for a fair and non-discriminatory environment for its businesses in India
3 min read
  • Xiaomi phones

ED Xiaomi investigation: China calls for a fair and non-discriminatory environment for its businesses in India

May 9, 2022