© Reuters. File photo: In this illustration taken on September 28, 2021, the Xiaomi logo is located next to a smartphone of the same brand. REUTERS/Dado Ruvic/Illustration
NEW DELHI (Reuters)-India said on Wednesday that it has asked the local subsidiary of Chinese smartphone giant Xiaomi (OTC:) to pay 6.53 billion rupees ($87.8 million) in import taxes after an investigation found that the company evaded taxes.
An investigation by the Indian Revenue Intelligence Agency revealed that the royalties and license fees paid by Xiaomi India to Qualcomm (NASDAQ:) and Beijing Xiaomi Mobile Software Co., Ltd. were not included in the company and its The government said in a statement in the value of contract manufacturers’ import transactions.
The statement said: “As the beneficial owner of such imported mobile phones and their parts, Xiaomi India did not add’royalty and license fees’ to the transaction value, which is evading tariffs.”
It added that three notices of the reasons for the performance have been issued to Xiaomi requesting the recovery of Rs 653 crore in taxes between April 2017 and June 2020.
“At Xiaomi India, we attach great importance to ensuring that we comply with all Indian laws. We are currently reviewing the notice in detail. As a responsible company, we will provide all necessary documents to support the authorities,” the company spokesperson said.
(1 USD = 74.3710 Indian rupees)
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