Xiaomi, Oppo could face Rs 1000 crore fine for violating Income Tax laws

The Income Tax Department claimed that smartphone manufacturers Xiaomi and Oppo have violated the tax laws, and they can be fined Rs 1000 crore.  On December 21, the Income Tax Department conducted raids in Delhi and 11 other states at the locations of Chinese smartphone companies and their subsidiaries across the country.  The Department found out several vital documents revealing that the companies were in open violation of the Income Tax Act in India.

“In the raids, it has been revealed that both the major companies have sent amount in the form of royalty quoting themselves and group companies located abroad, which is more than 5500 crores,” said Income Tax Department.  The statement further reads, “These companies did not comply with the disclosure of transactions under the Income Tax Act 1961.  Such mistake makes them liable for penal action.”

The Income Tax Department conducted raids in West Bengal, Andhra Pradesh, Bihar, Rajasthan, Tamil Nadu, Assam, Maharashtra, Delhi NCR, Karnataka, Madhya Pradesh, and Gujarat last week.  This action of the Income Tax Department has revealed the sending money of two big smartphone companies like Xiaomi and Oppo to their group companies abroad in the form of royalty.  In addition, more than 5,500 crores have been detected to be remitted, which could not be reconciled with the evidence and facts found during the search action.

The search operation also unveiled the method of procuring components for making smartphones.  The Department claimed that Xiaomi and Oppo had not disclosed the transactions in accordance with the provisions of the Income Tax Act 1961, which will now result in a penalty of 1000 crore.

The post Xiaomi, Oppo could face Rs 1000 crore fine for violating Income Tax laws appeared first on BGR India.

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