Oppo comes under DRI scanner for alleged customs duty evasion of ₹4,389 crore
Oppohas reportedly come under the scanner of the Directorate of Revenue Intelligence (DRI).
- The DRI has detected customs duty evasion of ₹4,389 crore by Oppo.
- The company has reportedly mis-declared the description of items imported by it.
AdvertisementOppo is the latest Chinese smartphone maker to come under the scanner of Indian agencies. The Directorate of Revenue Intelligence (DRI), the country’s apex anti-smuggling agency has detected customs duty evasion of around ₹4,389 crore.
According to a release by the Press Information Bureau, the DRI conducted a search operation at Oppo’s offices in the country and the residences of its key management, the agency recovered incriminating evidence that revealed willful misdeclaration in the description of items imported by the company.
The items imported by Oppo were reportedly used for the manufacture of mobile phones in the country. The DRI has claimed that Oppo mis-declared the items to avail ineligible duty exemption benefits. It has claimed that the company availed an exemption of ₹2,981 crore.
It looks like DRI has a strong case as the senior management of Oppo and domestic suppliers of the company have accepted the submission of wrongful descriptions to the Customs Authorities to evade payment of customs duty.
Oppo sent over ₹1,400 crore to China
Oppo reportedly also remitted a huge amount to China for payment of “Royalty” and “license fee”. The DRI has claimed that Oppo did not add the amount remitted to China in the transaction value of goods imported by them. This allowed the company to further evade customs duty of ₹1,408 crore, bringing the total amount of customs duty evasion to ₹4,389 crore.
“After completion of the investigation, a Show Cause Notice has been issued to
Oppo deposits ₹450 crore
Oppo has reportedly already deposited ₹450 crore as partial differential customs duty short. This means the Chinese smartphone maker will still have to pay ₹3,939 crore in customs duty.
“We have a different view on the charges mentioned in the SCN. We believe it's an industry-wide issue many corporates are working on. OPPO India is reviewing the SCN received from DRI, and we are going to reply the notice, presenting our side, and will be working further with the related government departments. OPPO India is a responsible corporate and believes in prudent corporate governance framework. OPPO India will take appropriate steps as may be needed in this regard including any remedies provided under the law," Oppo said in a statement to Business Insider India.
Oppo joins Vivo, Xiaomi, and other Chinese smartphone makers
This comes at a time when other Chinese smartphone makers are already under the scanner of Indian agencies for tax evasion, money laundering and other violations.
Oppo’s sister company Vivo recently came under the scanner of the Enforcement Directorate after the agency alleged that Vivo remitted ₹62,476 crore, which is around 50% of its revenue over a five-year period to its parent company in China to avoid paying taxes.
The ED is also investigating Xiaomi over allegations that the company remitted ₹5,551.27 illegally. Huawei also came under the scanner of the Income Tax department after the company remitted ₹750 crore as dividends to evade taxes.
Vivo's offices caught with 2 kilo gold bars after sending ₹62,000 crore back to China – all you need to know on the ED probe
After Xiaomi, Vivo comes under the Enforcement Directorate’s scanner
Vivo reportedly transferred nearly $8 billion to its parent company in China
- Bajaj Chetak Urbane electric scooter with 113 km range to hit the roads starting ₹1.15 lk
- Cyclone 'Michaung' alert in the Tirupati, Nellore, Prakasam, Bapatla, Krishna, West Godavari, Konaseema, and Kakinada of AP Districts
- Gold surges Rs 450 to hit record high of Rs 64,300 per 10 gm
- 7 best places to visit in Amritsar on your next trip
- Mizoram polls: ZPM dethrones MNF, bags 27 of 40 seats