New Delhi8 hours ago
- Copy link
Samsung has challenged the Government of India in a tax demand notice case of $ 520 million (Rs 4,451 crore). The company has filed a petition against the tax demand notice in the tax tribunal. The Income Tax Department accused the company of avoiding tariffs on the import of telecom equipment.
In the petition against this, Samsung said that the tax officials were fully aware that Reliance Jio was also importing equipment in the same way till 2017, but it was not taken action.
Samsung says that we were not told about the warnings received by Reliance in 2017. If it was already made clear, this dispute would not have happened. Apart from this, the government imposed a fine of $ 81 million (Rs 693 crore) on seven Samsung officials.
Import received warning in 2023 to make wrong classifying
- Samsung was warned in 2023 to incorrectly classify the import to avoid 10% or 20% tariffs on the essential transmission component used in mobile towers.
- The company imports telecom equipment through its network division. The company then imported these items and sold Bilinier Mukesh Ambani’s telecom giant Reliance Jio.
From 2018 to 2021, Samsung has not paid any arrears on the import of a value of Rs 6,711 crore from Korea and Vietnam.
Samsung pressures India’s tax authority to end the investigation
Samsung pressured India’s tax authority to abolish the investigation. The company then said that the component does not have a tariff and the authorities had known about its classification practice for years. However, the Customs Authority disagreed on the company’s statement on 8 January in one of its orders.
Samsung violated Indian laws: Commissioner of Customs
Commissioner of Customs Sonal Bajaj said that Samsung has violated Indian laws. Apart from this, the company has deliberately presented false documents to the Customs Authority for clearance. Investigators found that Samsung has violated all business ethics, industry practices and standards.
The company has complied with Indian laws: Samsung’s statement
Samsung said in a statement that the company has complied with Indian laws. At the same time, the company is assessing legal options to ensure safety of its rights.
Investigation started in 2021, company offices were searched
Samsung’s investigation began in 2021 when tax inspectors searched the company’s offices in Mumbai and New Delhi. Then tax inspectors also seized documents, emails and some electronic devices. After this, some top officials of the company were also questioned.
Did not pay dues on import of ₹ 6,711 crore from 2018 to 2021
Tax inspectors had found that from 2018 to 2021, Samsung has not paid any dues from Korea and Vietnam $ 784 million, or Rs 6,711 crore, to import a component of Rs 6,711 crore.
The government said that this component transmits on telecom towers transmit signal and tariffs. However, Samsung has disagreed on this.
