Income Tax Department Suddenly raids Chinese mobile phone companies all over India for 2021

Income Tax Department raids Chinese mobile phone companies all over India

From Wednesday morning, the offices of Chinese mobile phone companies operating all over the country were attacked. Many cities will start searching for missing persons at 9 am and will include Delhi, Noida, Gurgaon, Mumbai, Hyderabad and Bangalore.

 According to the report, the Indian smartphone market is about 2.5 million rupees. 70% of the shares come from the products of Chinese companies. 

At the same time, the Indian TV market  is about 30,000 rupees. Chinese companies produce about 45% of smart TVs.The percentage of non-smart TVs is about 10%. Major smartphone brands Xiaomi and OPPO said  Wednesday they would continue to work with authorities following local law, as the Income Tax Department is investigating the facilities of several Chinese mobile operators across the country.

The central government has told Congress that 80 Chinese companies are currently doing business in the country. There are 92 Chinese companies registered in India, 80 of which  are “active”.

 According to sources,  smartphone companies violated tax evasion rules and norms and were under the supervision of several research agencies, including  IT departments. As a responsible company, a Xiaomi spokesman said in a statement to IANS, “We take great care to ensure compliance with all Indian laws.” “As an investment partner in India, we are working fully with the authorities to ensure that they have all the information they need,” a spokesman for the company added.  OPPO said it respects and complies with national law.


 “We will follow the procedure and work fully with the relevant authorities,” the company added. Previously, some Chinese companies allegedly engaged in mobile loan applications and transportation were attacked by government agencies. Currently, only a few companies remain on their radar.

According to sources, the IT department has formed several teams to search, starting around 9 am on Wednesday and likely to continue until late in the day.  Reliable sources previously informed IANS that in the case of Xiaomi, routine IT procedures were being performed and there were no IT attacks the premises or sales partners.

According to people familiar with the matter, the production facility was searched along with some company housing. “Few teams also searched the warehouses of  Chinese mobile operators. Authorities have secured criminal documents, “sources said. Sources added that the attack took place in the offices of certain OPPO distributors, including Hyderabad. ZTE, a Chinese telecommunications equipment manufacturer in Gurgaon, was under the supervision of its IT department. It was also searched in August of this year. In connection with tax avoidance, we have recorded the testimony of your Indian boss. Definite irregularities have been found. They hid information in order to avoid taxes, said officials. 

The Income Tax (IT) sector is currently conducting raids at several facilities associated with Indian Chinese mobile operators such as Oppo and XiaomiAccording to sources, searches are underway at multiple manufacturing facilities and government agencies, as well as the corporate offices of Chinese mobile service providers like Xiaomi and Oppo. A property related to Oppo in Tamil Nadu was attacked. This includes offices in Perungudi and mobile phone parts manufacturing facilities in Kanchipuram. This is not the first time a Chinese company and its facilities have been searched this year.

At the beginning of August, the office of Chinese telecommunications equipment maker ZTE in Gurgaon was also searched, and its Indian boss was also asked by the IT department. Several tax violations were found by the investigation, according to sources. Recently, several other Chinese companies involved in mobile phones, loan applications and transportation have also been searched by Central Research Services. Business Today quotes Oppo as saying, “Our business relationship with India is compliant with Indian law as an investor. Oppo will work with the respective authorities on the steps, as soon as possible.” 


Sources indicate that attacks have taken place in Delhi, Mumbai, Bangalore, Greater Noida, Kolkata, Guwahati, and Indore, among other places. 

They added that some fintech companies are also included in this search. The CEOs of these companies are included in this search and are currently being questioned by income tax officers. The investigation was based on the results of a large-scale tax evasion information survey by these Chinese mobile operators, sources said. These companies have been monitored for a long time, but they were searched when  IT departments received specific signs of tax evasion. A significant amount of digital data has been found and confiscated, suggesting tax evasion, sources said.

In early August, ZTE, a telecommunications provider controlled by the Chinese government, was searched. The search was conducted at five ZTE offices, including the company’s headquarters, the residence of foreign directors, the company’s secretary, the account holder, and the company’s cashier. Examining import and sales invoices during ZTE’s investigation, the company recorded “huge” losses over the years but achieved a gross profit of about 30% in device transactions. I understand. Investigations also found that losses were recorded by the company through fake spending on the services it provides. Some of these beneficiaries have been identified as having incurred significant costs over the years. The addresses of these entities proved to be non-existent, sources said.


Following the attack, a similar attack was recently carried out by the Executive Office (ED), people familiar with the matter said. “Oppo’s Chinese distributor recently received a fine of hundreds of rupees from the Hyderabad Enforcement Department,” stated another person with knowledge of the case. We did not receive any response from Oppo, Xiaomi, Rising Star, or Dixon.

 Last Tuesday, there was news that Nepal also blacklisted many Chinese companies.  Participation in Nepal’s airport infrastructure development projects is also prohibited. Three Chinese-backed companies have been blacklisted after being found to have committed criminal activity (China CMC Engineering Company, Northwest Civil Aviation Airport Construction Group, and China Harbor Engineering Company). In addition, the United States imposed sanctions on about 13 Chinese companies in November. These companies are completely banned from doing business in the United States. You have been blacklisted.

Let me tell you that Chinese companies have already been accused of supporting the Chinese army with the help of some companies

 According to a statement released by the United States, these companies are trying to procure items of American origin to support the military use of the Chinese military. They were also accused of spying on former Chinese troops.

edited and proofread by nikita sharma

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