The Income Tax Department is conducting searches on major Chinese smartphone brands in India in a big crackdown.
The Income Tax Department is conducting raids on numerous, mainly Chinese, smartphone companies in India. This search reportedly includes huge companies including Oppo, Xiaomi, One Plus, etc.
According to the sources, raids are going on presently in cities like Delhi, Mumbai, Bengaluru, Greater Noida, Kolkata, Guwahati, Indore, and more. There are as many as two dozen companies under the radar according to these sources.
The Income Tax Department is interrogating Chief Executive Officers (CEOs) of these companies presently. This crackdown was initiated after intelligence reports suggested huge tax evasion by these Chinese companies. The companies were under the radar for a long time and as soon as the IT Dept. got concrete information, they conducted these raids on the companies.
It is believed to be too early to reveal details about the ongoing search as the IT Dept. is still investigating the matter, but a good amount of data confirming tax evasion has been found.
Earlier a Chinese government-controlled telecom company called ZTE was raided at 5 of their premises including the offices and residences of a few officials. The search revealed that there was a gross profit of about 30% whereas, the company has been showing “huge loss” on the records over the years.