Notices issued to three Chinese mobile companies for tax evasion: FM Sitharaman

Five cases of Customs duty evasion have been booked against Xiaomi Technology and
the Chinese company has been served with three show-cause notices with approx duty liability standing
at Rs 653 crore.

This was stated by Union Finance Minister Nirmala Sitharaman in Rajya Sabha on Tuesday, Aug 2.

Answering questions from BJP member Sushil Kumar Modi and others, she said the company has
deposited Rs 46 lakh only.

On the other hand, another company Vivo has been issued a demand notice of Rs 2217 crore against which it
has deposited only Rs 60 crore.

“Of the Rs 1.25 lakh crore total sales, Vivo has transferred through these 18 companies huge amounts of funds and it is believed that Vivo India has, in turn, remitted 0.62 lakh crore to its parent company which is outside India,”
Ms Sitharaman said.

In her written reply, the finance minister said a show cause notice demanding Rs 4403.88 crore has been served on
Oppo Mobiles India Ltd. based on the investigation conducted by the Directorate of Revenue Intelligence (DRI).

The Finance Minister also said there are 68 cases against customs duty evasion totalling Rs 1,342 cr, GST
related evasion matters totalling Rs 591 crore and service tax related evasion totalling Rs 5.58 crore

In reply to another question from BJP lawmaker Sushil Modi, MoS Finance Pankaj Chaudhary
informed that ED is investigating 2 cases related to cryptocurrency against WazirX under the provisions of
Foreign Exchange Management Act, 1999 (FEMA). Investigation in one case reveals that WazirX was
using the walled infrastructure of Cayman Island based exchange BINANCE.

Further, all crypto transactions between these 2 exchanges were not even being recorded on the
blockchains and were thus cloaked.

A show-cause notice has been issued under FEMA against WazirX for allowing outward remittance of crypto assets worth Rs 2790 crore to unknown wallets