Income Tax raids on entities linked to Chinese phone firms

Tribune News Service

New Delhi, December 22

The Income Tax (IT) Department today conducted raids across the country against entities engaged with Chinese mobile phone manufacturers on charges of tax evasion, sources said.

The raids are being carried out at premises in the National Capital Region, Mumbai, Bengaluru, Kolkata, Chennai and Hyderabad, among others, they said. Vendors and distribution partners of four to five such prominent firms in the mobile handset manufacturing and sales business were being searched, they said. Handset manufacturer Oppo reacted to the development saying it would assist the agencies.

Pan-India operation

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• Vendors and distribution partners of Chinese mobile phone companies being searched
• Raids in several cities, including NCR, Mumbai, Bengaluru, Kolkata, Chennai and Hyderabad
• On what grounds searches being conducted not known yet

“As an investment partner in India, we highly respect and abide by the law of the land. We will continue to fully cooperate with authorities concerned as per procedure,” a company spokesperson is reported to have said.

Another mobile phone maker, Xiaomi, is also reported to have said that its operations were in compliance with Indian laws. “As a responsible company, we give paramount importance to ensuring that we are compliant with all Indian laws. We are fully cooperating with authorities to ensure they have all the required information,” a Xiaomi spokesperson said.

Tax officials refused to share details about the specific grounds on which the searches were being carried out and the seizures during the operation that is learnt to have started on Tuesday.