Chinese smartphone makers, including Oppo Mobile, Vivo India and Xiaomi Technology, have been discovered evading paying taxes to the tune of ₹9,000 crore in India, Parliament was informed.
On Friday (July 21) data shared by the minister of state for electronics and IT Rajeev Chandrasekhar in Rajya Sabha showed tax evasion of around ₹9,000 crore, comprising customs duty and GST, has been detected between 2018-19 and 2022-23.
The government has recovered ₹1,629.87 crore from the companies during the period.
According to the data, Oppo Mobile India Pvt Ltd has been found evading ₹5,086 crore in taxes which includes ₹4,403 crore in customs duty and ₹683 crore in the form of GST.
Vivo has evaded taxes worth ₹2,923.25 crore comprising ₹2,875 crore in customs duty and ₹48.25 crore in GST, according to the written reply by Chandrasekhar.
Tax evasion of ₹851.14 crore has been detected in the case of Xiaomi Technology India Pvt Ltd comprising ₹682.51 crore in customs duty and ₹168.63 crore in GST. Chandrasekhar shared that customs duty evasion of ₹4,389 crore was detected in 2019-20 in the case of Oppo Mobile India Pvt Ltd, out of which ₹450 crore has been recovered.
Also read: I-T raids offices of Chinese mobile companies for tax evasion
Vivo India Mobile Pvt Ltd was found to be evading customs duty of ₹2,217 crore out of which ₹72 crore has been recovered in 2020-21.
In 2019-20, Xiaomi Technology India Pvt Ltd was found to be evading custom duty of ₹653.02 crore out of which ₹46 lakh has been recovered. In 2022-23, Vivo Mobile India Pvt Ltd was found evading ₹658 crore. According to the official data, Lenovo has evaded ₹42.36 crore GST.
Government has been able to recover ₹1,214.83 crore from Oppo, ₹168.25 crore from Vivo and ₹92.8 crore from Xiaomi, as per the official data.
Also read: 3 Chinese mobile cos face tax evasion case; 81 nationals asked to leave
The minister was replying to a question on the number of Chinese handset companies which have evaded taxes and made illegal remittances in India. Chandrasekhar said that cumulative turnover of Chinese mobile handset companies in 2021-22 was estimated to be ₹1.5 lakh crore in India.
“The total direct employment generated by them in their manufacturing operations is more than 75,000. They also have sales and operational workforce of around 80,000 workers,” the minister said.
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