Xei India asked to pay $87.80 million in import taxes

Xei India asked to pay $87.80 million in import taxes

The logo of Xiaomi is seen next to a smartphone of the same brand in this illustration.

NEW DELHI Reuters- India said on Wednesday that the local unit of Chinese smartphone giant Xiaomi had been asked to pay 6.53 billion rupees $87.80 million in import taxes after an investigation found that the company had evaded some duties.

A probe by India's Directorate of Revenue Intelligence showed that Xiaomi India's payment of royalty and licence fees to Qualcomm USA and Beijing Xiaomi Mobile Software Co Ltd, China was not included in the transaction value of imports by the company and its contract manufacturers.

By not including royalty and licence fee into the transaction value, Xiaomi India was evading customs duty as the beneficial owner of such imported mobile phones, parts and components, the statement said.

Three show cause notices were issued to Xiaomi for the tax demand and recovery of 6.53 billion rupees for the period from April 2017 to June 2020, it said.

At Xiaomi India, we give the utmost importance to ensuring that we comply with all Indian laws. We are reviewing the notice in detail. As a responsible company, we will support the authorities with all necessary documentation, according to a company spokesman.