Xiaomi India Fined Over Rs 600 Crores For Tax Evasion
By Rounak Roy
January 7th, 2022 5PM IST
Xiaomi India Allegedly Dodged Customs Duty in India
A hefty fine of Rs 653 crores has been imposed on Xiaomi by the Ministry of Finance in India as the company has reportedly evaded tax in the country. This news comes after it was recently suggested that both Oppo and Xiaomi will be slapped with a fine of up to Rs 1,000 crores in India.
Based on the reports, it came to light that Xiaomi India avoided paying customs duties by understating the cost, according to the report. Following this, the Directorate of Revenue Intelligence (DRI) investigated Xiaomi and its contractors.
The premises of Xiaomi India were also searched, as a result of which "incriminating" documents were found, indicating that the Chinese company transferred royalties and licensing fees to Qualcomm USA and Beijing Xiaomi Mobile Software as part of contractual obligations.
In an official statement, Xiaomi said, “At Xiaomi India, we give utmost importance to ensuring we comply with all Indian laws. We are currently reviewing the notice in detail. As a responsible company, we will support the authorities with all necessary documentation.“