Oppo, Chinese mobile companies
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The cumulative turnover of Chinese mobile handset companies in 2021-22 was estimated to be ₹1.5 lakh crore in India, said minister of state for electronics and IT Rajeev Chandrasekhar in Rajya Sabha

3 Chinese mobile cos face tax evasion case; 81 nationals asked to leave


The Centre is looking into cases of alleged tax evasion by three Chinese mobile companies, notices have been sent to them, Finance Minister Nirmala Sitharaman informed Rajya Sabha on Tuesday (August 2).

Replying to supplementaries during the Question Hour, the minister said the three companies are Oppo, Vivo India and Xiaomi.

The Department of Revenue Intelligence (DRI) has issued a notice to mobile company Oppo for total customs duty of ₹4,389 crore on grounds of mis-declaration of certain goods leading to a short payment in customs duty, she said, adding, “duty evasion we think is about ₹2,981 crore”. She said they have voluntarily deposited ₹450 crore, much against the demand of ₹4,389 crore.

Also Read: Vivo tried to destabilise India’s financial system, threaten national integrity: ED

Regarding the other companies, she said Xiaomi is another mobile company which deals with assembled MI mobile phones. “Three show-cause notices have been issued to them and the approximate duty liability there is about ₹653 crore. For the three show cause notices, they have been issued, they have deposited only ₹46 lakh,” the minister said.
The third company is Vivo India, for whom also there is a demand notice issued for ₹2,217 crore for which they have deposited ₹60 crore as voluntary deposit, she informed the House.

“Besides these, the ED is looking at 18 companies that were established by the same group Vivo, they have voluntarily remitted ₹62 crore as deposit but the parent company outside of India has the total sales of ₹1.25 lakh crore. Of the ₹1.25 lakh crore total sales, Vivo has transferred through these 18 companies huge amounts of funds and it is believed that Vivo India has, in turn, remitted ₹0.62 lakh crore to its parent company which is outside India,” Sitharaman said.

81 Chinese nationals given ‘Leave-India’ notice: Govt

As many as 81 Chinese nationals were given Leave India notices and 117 others were deported for violating visa conditions and the other illegal acts between 2019 and 2021, the Lok Sabha was informed on Tuesday (August 2).

Also Read: 14 Chinese nationals staying illegally in UPs Noida since 2020 detained

Union Minister of State for Home Nityanand Rai also said that 726 Chinese nationals were placed in the adverse list for violating visa conditions and other illegal acts. The minister said the government maintains the records of such foreigners including Chinese nationals who enter India with valid travel documents. He said some of these foreigners overstay beyond visa period owing to ignorance or under compelling circumstances like medical emergency or other personal reasons.

Rai said in genuine cases where overstay is unintentional or because of ignorance or under compelling circumstances, the period of overstay is regularized after charging the penalty fees and visa is extended if required. Where overstay is found to be intentional or unjustifiable, appropriate action is taken as per the Foreigners Act 1946, including issuance of Leave India notice to the foreigner and charging penalty and visa fee, he said.

(With inputs from agencies)

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