Another Chinese mobile company has been raided. Chinese mobile company Oppo Mobiles has been accused of tax evasion. This action has been taken by the Directorate of Revenue Intelligence (DIRECTORATE OF REVENUE INTELLIGENCE). Oppo India Mobile has been accused of evading customs duties to the tune of Rs 4,389 crore. Oppo India is involved in the production of mobile handsets, assembling spare parts in mobiles, wholesale trade and mobile phone sales. Oppo India is selling mobile phones under different brands. These include Oppo, OnePlus and Realme. Oppo India has been issued a notice to pay customs duty of Rs 4,389. In addition, the notice proposes penalties on Oppo India employees and Oppo China.
According to the Finance Ministry, Oppo Mobile is known as Oppo India. An investigation was underway by the DRI against Oppo India. In this, tax evasion of Rs 4389 crore has come to light. During the investigation, the DRI raided the offices of Oppo India and the homes of some prominent people associated with the management. Some important documents have been found in it. According to these documents, Oppo India has deliberately misrepresented the import of certain items related to mobile phone products. Based on this information, Oppo India got tax relief of Rs 2981 crore in a wrong way. An inquiry by the DRI also revealed that customs officials were misinformed during the import.
Oppo India had provided technology, brand, IPR licenses to multinational companies in China to pay royalties and license fees. The royalties and license fees paid by Oppo India were not added to the transaction value of the imported goods. This matter is a form of evasion of customs duty.