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India asks Xiaomi to pay $88 million in import taxes it found it evaded -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – The Xiaomi logo is next to the smartphone of the same brand. This illustration was taken September 28, 2021. REUTERS/Dado Ruvic/Illustration

NEW DELHI (Reuters – India Wednesday announced that it has requested the Xiaomi local unit to pay 6.53 trillion rupees ($87.80million) in import taxes. The request came after an investigation revealed that some duties had been evaded by the company.

India’s Directorate of Revenue Intelligence conducted an investigation and found that Xiaomi India paid Qualcomm royalty and licence fees (NASDAQ: USA) to Beijing Xiaomi Mobile Software Co Ltd. China. The government stated in a statement that the payment was not added into the value of the imports of the company and contract manufacturers.

The statement stated that Xiaomi India had evaded customs duty by not including “royalty” and “licence fee” to the transaction value. This was because it is the beneficial owner for such imported phones and the components.

It added that Xiaomi has received three show cause notices in relation to tax demand and collection of 6.53 Billion rupees during the April 2017-June 2020 period.

Xiaomi India is committed to being compliant with Indian law. The notice is currently being reviewed in depth. “As a responsible company we will support authorities with all documentation,” said a spokesperson.

($1 equals 74.3710 Indian rupees).

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