August 9, 2022
Vivo India alleges Rs 2,200 crore tax evasion by Directorate of Revenue Intelligence: Details

The Directorate of Revenue Intelligence has accused China-owned Vivo Mobile of tax evasion of crores of rupees. 2,200 crore, it said in a statement. This is the second charge of tax evasion in the country this week against a Chinese phone maker. The DRI has detected customs evasion, following which it has issued a show cause notice to Vivo India, the statement said.

A show cause notice is a formal demand for an accused party to justify himself.

The DRI investigation revealed “evidence indicating intentional mis-declaration in the description of certain imported goods”, the statement said.

Vivo India did not immediately respond to a Reuters request for comment.

Last month, it was reported that the Enforcement Directorate, a financial crime-fighting agency, had raided Vivo’s properties in the country.

On Tuesday, DRI issued a show-cause notice to Oppo, another Chinese phone maker, demanding a duty of Rs. 4,400 crores.

Finance Minister Nirmala Sitharaman on Tuesday said that the government is probing cases of alleged tax evasion by three Chinese mobile companies Oppo, Vivo India and Xiaomi and notices have been issued to them.

“The Department of Revenue Intelligence (DRI) has issued notices to mobile company OPPO for total customs duty of Rs 4,389 crore, and these are based on incorrect declaration of certain goods, leading to short payment of customs duty. We feel That this duty evasion is about Rs 2,981 crore,” Sitaraman said in response to a question by BJP member Sushil Modi in Rajya Sabha.

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