Xiaomi, Oppo could face Rs 1,000 crore fine for violating law: Income Tax Dept
Xiaomi and Oppo could soon face a fine worth Rs 1000 for violating tax laws, according to the latest Income Tax department notification.
New Delhi: China-based smartphone brands such as Xiaomi and Oppo could soon face a fine worth Rs 1000 for violating tax laws, according to the latest Income Tax department notific. The department had last week raided several offices of the smartphone makers and their third-party manufacturers in India.
The income tax department pointed out that the firms inflated their expenses in a bid to lower their taxable profits of more than Rs 1,400 crore. The department had conducted its searches in 11 states including Delhi, Karnataka, Tamil Nadu, Gujarat and Rajasthan, among others.
In the official statement put forward today, December 31, the Income Tax Department said that the search action revealed that two major companies - Xiaomi and Oppo - made remittances in form of royalty, to and on behalf of the group companies located abroad, which aggregates to more than Rs 5,500 crore.