Vivo India Accused of Rs. 2,217 crore tax evasion by Directorate of Revenue Intelligence: More Details

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The DRI issued a show-cause order for Oppo the previous day, requesting fees of Rs. 4,400 crore.

The Directorate of Revenue Intelligence (DRI) has identified customs duty evasion amounting to 217 crore rupees by Chinese company Vivo Mobile India, according to an official announcement released on Wednesday.
Vivo India is a subsidiary company of Guangdong China-based Vivo Communication Technology. The company is involved in the manufacturing, assembly wholesale trade and distribution of mobile phones and other accessories.

In the investigation, search warrants were issued by DRI officers on the premises of the factory of Vivo India, which led to the discovery of incriminating documents that show a deliberate misstatement in the description of some items that were imported through Vivo India, for use in the production cellphones, in line with an announcement issued in the Union Finance Ministry.

This error led to the illegally taking advantage of duty exemption benefits through Vivo India, amounting to $217 million according to the ministry.

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Following the conclusion of the investigation After the investigation is complete, a Show Cause Notice was issued for Vivo India demanding Customs duty in the amount of Rs. 2,217 crore under the regulations in the Customs Act, 1962, it stated.

A sum of $ 60 crore has been made available for transferred via Vivo India, towards the payment of their obligation to pay differential duty.

In a separate investigation conducted by DRI, Show Cause Notices demanding duty of 4,403.88 crore were given to Oppo Mobiles India Private Limited according to the Finance Ministry said. On Tuesday DRI issued a show-cause notice to Oppo Mobiles India Private Limited DRI issued a show-cause order for Oppo another Chinese phone maker, requesting duty of approximately Rs. 4,400 crore.

The Finance Minister of India, Nirmala Sitharaman Tuesday announced her government was investigating cases of tax evasion committed by the three major mobile firms from China -three of them – Oppo, Vivo India and Xiaomi -and notices have been sent to the three companies.

“The Department of Revenue Intelligence (DRI) has issued a notice to Oppo the mobile company with a customs duty of $4,389 crore. These are based on incorrect declaration of certain goods which resulted in a small payment for customs duty. The duty evasion, as we believe, amounts to two-and-a-half crores.” Sitharaman stated in the Rajya Sabha in response to an inquiry from BJP Member Sushil Modi.

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