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Vivo India accused of custom duty evasion of Rs 2,217 crore, DRI tightens noose after ED


Many Chinese companies doing business in India are adopting new avenues to avoid tax. Last month, information emerged that Chinese smartphone company Vivo had ‘illegally’ transferred Rs 62,476 crore to China to avoid paying taxes in the country. Now the Directorate of Revenue Intelligence (DRI) has said that Vivo Mobile India has evaded customs duty of around Rs 2,217 crore. DRI had received information that Vivo is bringing its goods from China to India without paying customs duty. During investigation, custom duty evasion was detected.According to media reports, it has been told by the Ministry of Finance that DRI officials conducted the investigation in the factory premises of Vivo India. There was a search. Evidence indicating intentional mis-declaration was found in details related to certain items imported for smartphone manufacturing. The ministry has said that Vivo India has availed unfair duty exemption of Rs 2,217 crore by giving false information.

A show cause notice has been issued to Vivo India in the matter. In this, custom duty of Rs 2,217 crore has been demanded under the provisions of the Customs Act, 1962. On the other hand, Vivo India has voluntarily deposited Rs 60 crore to pay its differential duty liability.

According to the Finance Ministry, recently another investigation was conducted by the DRI. In this, a show cause notice has been issued demanding duty of Rs 4,403.88 crore from Oppo Mobiles India Pvt Ltd. Finance Minister Nirmala Sitharaman said on Tuesday 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.

Recently, the ED also found in its investigation that Vivo has ‘illegally’ transferred Rs 62,476 crore to China to avoid payment of tax in the country. The ED claimed to have busted a major money laundering racket involving Chinese nationals and several Indian companies. This money was being told about half of Vivo’s total business of Rs 1 lakh 25 thousand 185 crore. The ED had also raided 48 places related to Vivo India. In the raids, Rs 465 crore, Rs 73 lakh cash and 2 kg gold bars kept in 119 bank accounts were confiscate.

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