Vivo in MORE trouble! Indian Govt now accuses of tax evasion
More trouble ahead for Vivo India. The smartphone maker of Chinese origins is yet to recover from the previous case of the Enforcement Directorate raiding Vivo and freezing its bank accounts for a case related to money laundering. Vivo is now accused by the Directorate of Revenue Intelligence (DRI) for evading taxes worth Rs. 2,217 crores. Vivo India is yet to release a statement regarding this matter.
In a report from Reuters, Vivo is now accused by the government agency of evading taxes worth Rs. 2, 217 crores. The Directorate of Revenue Intelligence (DRI) has found customs duty evasion from Vivo. It has now issued a show cause notice to Vivo India for the same. A show cause notice is simply a formal demand for the accused party to justify themselves.
Vivo India accused of tax evasion by DRI
“The DRI's investigation led to the finding of incriminating evidence indicating wilful mis-declaration in the description of certain items imported,” the statement said.
The Finance Ministry has said in a statement, “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 Rs. 2,217 crores. After completion of the investigation, a Show Cause Notice has been issued to M/s Vivo India demanding Customs duty amounting to Rs. 2,217 crores, under the provisions of the Customs Act, 1962," it added.
So far, Vivo India has voluntarily submitted a sum of Rs. 60 crores towards discharge of their differential duty liability.
Prior to this, the Directorate of Revenue Intelligence issued show cause notices demanding a sum of Rs. 4,403.88 crores have been issued to Oppo Mobiles India Private Limited.