The Ministry of Finance of India issued a statement on July 13, local time, saying that an investigation by the Indian Revenue Intelligence Service (DRI) found that OPPO evaded tariffs of nearly 43.9 billion Indian rupees (about 551 million US dollars, or 3.718 billion). RMB), "a notice has been issued to OPPO India for tax payment".
Indian investigators found evidence that OPPO "mistakenly applied for duty exemptions on some imported products used in the production of mobile phones" and did not include royalties paid when calculating the transaction value of imported goods. The Indian Revenue Intelligence Service recommended penalties for OPPO, OPPO India and related employees, the statement said, without elaborating.
OPPO India responded in an emailed statement: "We take a different view of the allegations mentioned in the Indian government's statement. We believe this is an industry-wide issue that many businesses are working to address. OPPO India will provide notification on the notification. Reply, put forward our views, and will further cooperate with relevant government departments."
OPPO India said: "OPPO India is a responsible business and believes in a prudent corporate governance framework. OPPO India will take appropriate measures that may be required in this regard, including any remedies provided by law."
OPPO India is engaged in the manufacture, assembly, wholesale trade, and distribution of mobile phones and their accessories in India. It sells phones of various brands, including OPPO, OnePlus, and Realme.
The investigation also revealed that OPPO India has remitted/mandated the payment of "royalties" and "licensing fees" to several multinational companies including China in lieu of using proprietary technology/brand/IP licensing, etc.
The above-mentioned "royalty fees" and "licensing fees" paid by OPPO India were not included in the transaction value of its imported goods, which violated the provisions of the Indian Customs Act. OPPO India is suspected of evading taxes on the account amounting to 14.08 billion Indian rupees (about 1.193 billion yuan).
OPPO India has voluntarily deposited 4.5 billion Indian rupees (about 381 million yuan) as part of their payment of the difference in tariffs.
In December last year, the Indian tax department also searched Chinese mobile phone manufacturing companies, including OPPO, and their associates, and claimed to have found unaccounted income due to violations of Indian tax laws and regulations.
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