Finance Minister Nirmala Sitharaman told Rajya Sabha on Tuesday that the government is looking into cases of alleged tax avoidance by three mobile companies in China and that notice have been sent to them.

The three firms are Oppo, Vivo India, and Xiaomi, the minister responded to supplements during the Question Period. She added that "duty evasion we think is about Rs 2,981 crore" and that "the Department of Revenue Intelligence (DRI) has issued a notice to mobile company Oppo for total customs duty of Rs 4,389 crore and these are on the grounds of misdeclaration of certain goods leading to a short payment in customs duty." We believe that undervaluing imported products for the purpose of paying customs duty amounts to a Rs 1,408 crore tax evasion, she said.

In contrast to the demand for Rs 4,389 crore, she said they had come forward voluntarily to deposit Rs 450 crore.  Regarding the other entities, the FM said Xiaomi is another mobile company that deals with assembled MI mobile phones. ''Three show-cause notices have been served to them and the duty liability there is about Rs 653 crore approx.. For the three show cause notices, they have been issued, they have deposited only Rs 46 lakh,'' the minister said.
She informed the House that Vivo India is the third company, for which a demand notice for Rs 2,217 crore had also been issued and for which they had made a voluntary deposit of Rs 60 crore.

In addition to this, the ED is investigating 18 businesses started by the same group as Vivo, where voluntary deposits of Rs 62 crore have been made, despite the parent company's 1.25 lakh crore in annual revenues outside of India.

"Vivo has moved significant sums of money totaling Rs 1.25 lakh crore through these 18 entities, and it is believed that Vivo India has, in turn, sent Rs 0.62 lakh crore to its parent company, which is located outside of India.", the finance minister said.

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