I-T Department Raids Chinese Mobile Firms; Xiaomi, OPPO Say Cooperating With Indian Authorities

New Delhi: As the Income Tax department conducted searches at several premises of Chinese mobile companies across the nation, leading smartphone brands Xiaomi and OPPO on Wednesday said they continue to cooperate with authorities as per the law of the land, reported news agency IANS. According to sources, the smartphone companies were allegedly violating rules and norms to evade taxes and were on the radar of several probe agencies, including the I-T Department.Also Read – Samsung To Remain Top Global Smartphone Player In Future: Report

In a statement to IANS, a Xiaomi spokesperson said that as a responsible company, “We give paramount importance to ensuring that we are compliant with all Indian laws”. “As an invested partner in India, we are fully cooperating with authorities to ensure they have all the required information,” the company spokesperson added. Meanwhile, OPPO said: “We highly respect and abide by the law of the land.” We will continue to fully cooperate with authorities concerned as per procedure, the company added. Also Read – OPPO Unveils Its First Foldable Flagship Smartphone ‘OPPO Find N’ | Check Latest Features

Earlier, some Chinese firms which were allegedly running mobile loan application and transport business, were raided by the government agencies. Now, few more firms have come into their radar. Also Read – ITR Filing Deadline Nears: Keep These Documents Ready Before Filing Income Tax Returns | Full List Here

IT-raids on Chinese mobile-making companies: Here are 5 points to know

1. According to sources, several teams were formed by the I-T Department to conduct searches which started around 9 AM on Wednesday, and were likely to continue till late in the day.
2. In the case of Xiaomi, routine IT procedure was being carried on, and there was no I-T raid at its premises or at its distributors’ places, reliable sources had earlier told IANS.
3. According to an official, basically the manufacturing units were being raided along with a few corporate houses. “Few teams also raided the godowns (warehouses) of the Chinese mobile companies. The officials have recovered incriminating documents,” said the source.
4. The raids took place at the offices of state-distribution partners of OPPO, including in Hyderabad, the source added.
5. ZTE, a Chinese firm which deals in telecom equipment manufacturing in Gurugram, was on the radar of the IT Department. The firm was also raided in August this year. “We had recorded the statement of their India head in connection with tax evasion. We had found irregularities on their end. They were concealing information to avoid tax,” said the official.

(Based on IANS inputs)