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Oppo gets Rs 4389 crores Tax Notice for custom duty evasion in India

A few days ago, Vivo India was in the news for alleged for taxes evasion. Now, one more smartphone brand is under the radar of the agencies for evading customs duty. DRI has searched Oppo India and has found evaded customs duty worth Rs. 4389 crores.

The company is engaged in the business of manufacturing, assembling, wholesale trading, distribution of mobile handsets and accessories thereof, across India. Company deals in various brands of mobile phones, including Oppo, OnePlus and Realme.

Oppo gets Rs 4389 crores Tax Notice for custom duty evasion in India

As a part of their investigation, offices of Oppo India have searched along with the residences of the key employees of the company. This led to the recovery of incriminating evidence indicating willful mis-discretion in the description of certain items imported by the company for use in the manufacture of mobile phones.

According to a PIB press release, during the course of investigation, searches were conducted by DRI at the office premises of the company and residences of its key management employees.

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Press Release on Oppo

“This mis-declaration resulted in wrongful availment of ineligible duty exemption benefits by Oppo India amounting to Rs 2,981 crore. Among others, senior management employees and domestic suppliers of the company were questioned, who in their voluntary statements accepted the submission of wrongful description before the Customs Authorities at the time of import,” stated the press release.

Oppo gets Rs 4389 crores Tax Notice for custom duty evasion in India

The said ‘royalty’ and ‘licence fees’ paid by the company were not being added to the transaction value of the goods imported by them, in violation of provisions of the Customs Act. The alleged duty evasion by the company on this account is ₹ 1,408 crore. A sum of ₹ 450 crore has been voluntarily deposited by Oppo India, as partial differential Customs duty short paid by them.

“After completion of the investigation, a show-cause notice has been issued to Oppo India demanding Customs duty amounting to ₹ 4,389 crore. The Notice also proposes relevant penalties on Oppo India, its employees and China, under the provisions of the Customs Act, 1962,” the Ministry said.

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