DRI accuses Vivo Mobile India of ₹2,217 cr tax evasion
Premium- The Directorate of Revenue Intelligence detected customs duty evasion, following which it has issued a show cause notice to Vivo India
During an investigation pertaining to Chinese-owned Vivo Mobile, the Directorate of Revenue Intelligence (DRI) on Wednesday said it has detected customs duty evasion of around ₹2,217 crore.
Vivo India is a subsidiary company of Vivo Communication Technology Co Ltd, Guangdong, China, and is engaged in the business of manufacturing, assembling, wholesale trading as well as distribution of mobile handsets and accessories thereof.
The Finance Ministry, in a statement, said, "During the course of investigation, searches were conducted by DRI officers at the factory premises of M/s Vivo India, which led to the recovery of incriminating evidence indicating wilful mis-declaration in the description of certain items imported by M/s Vivo India, for use in the manufacture of mobile phones."
"This mis-declaration resulted in wrongful availment of ineligible duty exemption benefits by M/s Vivo India, amounting to ₹2,217 crore. After completion of the investigation, a Show Cause Notice has been issued to M/s Vivo India demanding Customs duty amounting to ₹2,217 crore, under the provisions of the Customs Act, 1962," it further said.
A sum of ₹60 crore has been voluntarily deposited by Vivo India, towards discharge of their differential duty liability.
Recently, in another set of investigations conducted by the DRI, show cause notices demanding duty of ₹4,403.88 crore have been issued to Oppo Mobiles India Private Limited.
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