Vivo's India Unit Evaded Tax To The Tune Of $280 Million: Know Everything

Chinese handset maker Vivo's India unit has been accused of evading customs duty of more than $280 million by the ​Directorate of Revenue Intelligence.

The government is looking into cases of alleged tax evasion by three smartphone companies based in China that includes Vivo.Image: Getty

Chinese handset maker Vivo's India unit has been accused of evading customs duty of more than $280 million by the ​Directorate of Revenue Intelligence, weeks after the Enforcement Directorate (ED) raided the offices of the smartphone maker, the media has reported. 

According to the finance ministry, the Directorate of Revenue Intelligence has recovered “incriminating evidence indicating wilful misdeclaration in the description of certain items” imported by the smartphone maker's India unit while conducting searches at its factories. The finance ministry added in a press statement: "It resulted in “wrongful availment of ineligible duty exemption benefits” by the company."

The government is looking into cases of alleged tax evasion by three smartphone companies based in China and notices have been given to them, Finance Minister Nirmala Sitharaman recently informed Rajya Sabha. Replying to the supplementaries during the Question Hour, the FM said that the three smartphone companies are Oppo, Vivo India and Xiaomi, according to news agency PTI.

Meanwhile, the ED last month told Delhi High Court through an affidavit that Vivo India indulged in money laundering to destabilise the financial system and challenge the integrity and sovereignty of the country. The affidavit was filed before the Delhi High Court last week. The anti-money laundering agency has said in the affidavit that they were scanning the suspicious financial transactions of 22 firms owned by Hongkong-based foreigners and entities. These firms transferred huge money to China, according to news agency IANS.