After India’s ₹4400 Cr Tax Slap, China’s Oppo Seeks Sympathy

| Updated: 13 July, 2022 7:08 pm IST

NEW DELHI: Hours after the Directorate of Revenue Intelligence (DRI) issued a show cause notice to Chinese phone maker Oppo India for duty evasion to the tune of Rs 4,389 crore, the phone maker said that it has a different view on the charges mentioned and it believes that it’s an “industry-wide” issue many corporates are working on.

In a statement over the charges of the DRI, Oppo India said, “We have a different view on the charges mentioned in the SCN.”

“We believe it’s an industry-wide issue many corporations are working on. OPPO India is reviewing the SCN received from DRI, and we are going to reply to the notice, presenting our side, and will be working further with the related government departments,” the Chinese phone maker said.

It also said that OPPO India is a “responsible corporate” and believes in a prudent corporate governance framework.

“OPPO India will take appropriate steps as may be needed in this regard including any remedies provided under the law,” the statement said.

The remarks from the company came after the DRI issued a show cause notice to the phone maker and accused Oppo of duty evasion to the tune of Rs 4,389 crore.

The DRI alleged that during an investigation pertaining to Oppo Mobiles India Private Limited (herein referred to as Oppo India) a subsidiary company of Guangdong Telecommunications Corporation Ltd based in China (hereinafter referred to as ‘Oppo China’), the DRI detected customs duty evasion of around Rs 4,389 crore.

Oppo India is engaged in the business of manufacturing, assembling, wholesale trading, and distributing mobile handsets and accessories thereof, across India and deals in various brands of mobile phones, including Oppo, OnePlus and Realme.

The DRI officials said that during the course of the investigation, searches were conducted by the agency at the office premises of Oppo India and residences of its key management employees, which led to the recovery of incriminating evidence indicating wilful misdeclaration in the description of certain items imported by Oppo India for use in the manufacture of mobile phones.

“This misdeclaration resulted in wrongful availment of ineligible duty exemption benefits by Oppo India amounting to Rs 2,981 crore,” the official said.

The SCN issued to Oppo India also proposed penalties on the company, its employees and Oppo China under the provisions of the Customs Act.

This is the second major action against a Chinese phone maker in India in July.

Last week, the ED carried out searches at over 48 locations linked to Chinese phone maker Vivo and 23 other companies associated with it, including GPICPL, whose directors have fled India.

The ED said that Vivo India remitted Rs 62,476 crores out of Rs 1,25,185 crores mainly to China, in order to disclose huge losses in Indian incorporated companies to avoid payment of taxes in India.

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