Indian Tax Authorities Recover ₹1,629 Crores from Chinese Mobile Companies Evading Taxes

On Friday, it was revealed in Parliament that Chinese smartphone manufacturers, such as Oppo Mobile, Vivo India, and Xiaomi Technology, have been involved in tax evasion amounting to ₹9,000 crore in India.

According to data shared by Electronics and IT Minister Rajeev Chandrasekhar in the Rajya Sabha, tax evasion of around ₹ 9,000 crore, which includes customs duty and GST, has been detected in 2018-19 and 2022-23.

The state has collected 1,629.87 million euros from companies during the period.

According to the data, Oppo Mobile India Pvt Ltd has been found to have evaded ₹ 5,086 crore in taxes, which includes ₹ 4,403 crore in customs duty and ₹ 683 crore in GST.

According to Chandrasekhar’s written reply, Vivo has evaded taxes to the tune of ₹ 2,923.25 crore, including ₹ 2,875 crore in customs duty and ₹ 48.25 crore in GST.

In the case of Xiaomi Technology India Pvt Ltd, tax evasion of ₹ 851.14 crore has been detected, which includes ₹ 682.51 crore in customs duties and ₹ 168.63 crore in GST.

Chandrasekhar said that in the case of Oppo Mobile India Pvt Ltd, duty evasion of ₹ 4,389 crore was detected in 2019-20, of which ₹ 450 crore has been recovered.

Vivo India Mobile Pvt Ltd was found to have evaded duty to the tune of ₹2,217 crore, of which ₹72 crore has been recovered in 2020-21.

During 2019-2020, Xiaomi Technology India Pvt Ltd was found to have evaded ₹653.02 crore in customs duty, of which ₹46 lakh has been recovered.

In 2022-23, Vivo Mobile India Pvt Ltd was found to be evading ₹658 crore.

According to official data, Lenovo has avoided ₹42.36 billion in GST.

According to official data, the state has recovered ₹1,214.83 from Oppo, ₹168.25 from Vivo and ₹92.8 from Xiaomi.

The minister was responding to a question about the number of Chinese phone companies that have evaded taxes and made illegal remittances in India.

Chandrasekhar said the cumulative turnover of Chinese mobile phone companies in India in 2021-22 was estimated at ₹1.5 lakh crore.

“The direct employment they create in their production activities totals more than 75,000. They also have sales and operational employees of around 80,000,” the minister said.