Business

Xiaomi Slapped With Rs 653 Crore Import Duty Evasion Notice

   Download Android App    Share in      FullScreen   CheckVideos

Xiaomi has actually been slapped with Rs 653 crore import task evasion noticeNew Delhi: A show cause of Rs 653 crore has been slapped on Chinese phone maker Xiaomi's India unit for supposed import duty evasion, official sources said on Wednesday.The notification was provided following the healing of documents during searches on its properties that indicated remittance of royalty and licence charge to US and Chinese firms under legal obligations, the union financing ministry stated on Wednesday.Replying to an email question, a Xiaomi spokesperson said, At Xiaomi India, we give utmost significance to guaranteeing we adhere to all Indian laws.

We are presently reviewing the notice in information.

As a responsible business, we will support the authorities with all essential documentation.

Proof collected throughout investigations by the Directorate of Income Intelligence (DRI) suggested that neither Xiaomi India nor its contract makers were consisting of the quantity of royalty paid by the company in the assessable value of the items imported by the business and its contract producers, which remains in infraction of the customs law, the ministry said.

By not including royalty and licence charge in the transaction value, Xiaomi India was evading customizeds responsibility, being the helpful owner of such imported smart phones, the parts and parts thereof, it included.

After conclusion of the investigation by the DRI, 3 program cause notifications have been released to M/s Xiaomi Technology India Private Limited for demand and recovery of duty amounting to Rs.

653 crore for the period April 1, 2017 to June 30, 2020, under the arrangements of the Customs Act, 1962, the financing ministry said.During the examinations, it further emerged that the royalty and licence cost paid by Xiaomi India to Qualcomm USA and to Beijing Xiaomi Mobile Software Application Co Ltd, China (related party of Xiaomi India) were not being included the deal value of the products imported by the firm and its contract manufacturers.Investigations even more revealed that Xiaomi India is engaged in the sale of MI brand name smart phones and these mobile phones are either imported by the company or assembled in India by importing elements of cellphones by agreement manufacturers of Xiaomi India.

The MI brand mobile phones made by the agreement manufacturers are offered specifically to Xiaomi India, in terms of the contract agreement.

The DRI officials had gotten intelligence input that M/s Xiaomi Innovation India Private Limited (Xiaomi India) was averting custom-mades responsibility by method of undervaluation, following which an examination was initiated by DRI versus the business and its agreement manufacturers.

During the investigation, searches were conducted by DRI at the facilities of Xiaomi India, and the concern of remitting royalty and licence fee to Qualcomm USA and to Beijing Xiaomi Mobile Software Co Ltd concerned light.Statements of key persons of Xiaomi India and its contract producers were recorded, during which one of the directors of Xiaomi India validated the said payments, it said.




Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021

Buy Our Merchandise (Peace Series)

 

Contribute US to Start Broadcasting


It's Voluntary! Take care of your Family, Friends and People around You First and later think about us. Its Fine if you dont wish to contribute and if you wish to contribute then think about the Homeless first and Feed them. We can survive with your wishes too :-). You can Buy our Merchandise too which are of the finest quality.

Debit/Credit/UPI

UPI/Debit/Credit

Paytm

STRIPE

Details
Category: Business


20