August 12, 2022
Vivo India alleges tax evasion of Rs 2,217 crore by Directorate of Revenue Intelligence: Details


According to an official statement released on Wednesday, the Directorate of Revenue Intelligence (DRI) has detected customs evasion of around Rs 2,217 crore by Chinese firm Vivo Mobile India.
Vivo India is a subsidiary of China-based Vivo Communication Technology Guangdong. The company is engaged in the business of manufacturing, assembling, wholesaling as well as distribution of Mobile Handsets and its Accessories.

During the course of investigation, searches were conducted by DRI officials in the factory premises of Vivo India, resulting in the recovery of incriminating evidence indicating intentional mis-declaration in the details of certain items imported by Vivo India for use in manufacturing of mobiles. phone, according to a statement issued by the Union Finance Ministry.

The ministry said that this wrong declaration resulted in wrongful availing of ineligible duty exemption of Rs 2,217 crore by Vivo India.

After the completion of the investigation, a show cause notice has been issued to Vivo India, seeking a customs duty of Rs 2,217 crore under the provisions of the Customs Act, 1962.

Vivo India has voluntarily deposited Rs 60 crore towards discharge of its differential duty liability.

Recently, in another set of investigations conducted by the DRI, a show cause notice has been issued to Oppo Mobiles India Pvt Ltd demanding a fee of Rs 4,403.88 crore, the Finance Ministry said. 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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