Xiaomi India Sent Notice by Directorate of Revenue Intelligence Over Alleged Tax Evasion of Rs 653 Crore

Xiaomi logo

The Directorate of Revenue Intelligence or DRI in India on Wednesday issued show-cause notices to the popular Chinese mobile handset maker Xiaomi Technology Pvt. Ltd for demand and recovery of duty which amounts to Rs 653 crore.  A DRI raid a while ago initiated an investigation against the company some time back.

Xiaomi Charged with Evasion of Customs Duty in India

Xiaomi logo

This is seemingly in violation of Section 14 of the Customs Act 1962 and Customs valuation Rules 2007. Xiaomi India seems to have been evading Customs duty being the beneficial owner of imported mobiles, parts and components by not adding the royalty and licence fee, the Ministry said.

The investigation included searches conducted by the DRI at Xiaomi India’s premises, leading to a finding of incriminating documents suggesting that Xiaomi India was remitting royalty and licence fees to both Qualcomm USA and to Beijing Xiaomi Mobile Software Co. Ltd under obligations in the contract.

The statements from both Xiaomi India execs and contract manufacturers come with a confirmation from a Director of Xiaomi India, in regards to said payments.

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Additionally, “it was found that the ‘royalty and licence fee’ paid by Xiaomi India to Qualcomm USA and to Beijing Xiaomi Mobile Software Co. Ltd., China (related party of Xiaomi India) were not being added in the transaction value of the goods imported by Xiaomi India and its contract manufacturers,” the statement adds.

What Else is the Company Working on?

Redmi Note 11S

In other news, it seems that the smartphone maker is gearing up to launch another device under its Redmi Note 11 series, this time in the form of the Redmi Note 11s. The Redmi Note 11s might feature a 108MP main shooter and a display with support for high refresh rate if rumours are true.

To this day, there have been certain leaks and rumours in regards to the specifications and features, but the launch timeline, an important bit of information in relation to any upcoming device has not surfaced.

As of now, there is no word in relation to an India launch, but considering how popular the Note series is in the region, it is just a matter of time before the device comes to India. Other markets will get the device by the end of February.

The Redmi Note 11S comes with model number 2201117SG. It has got the NBTC certification. Moreover, there will be an Indian variant of the Note 11s, which has a model number 2201117SI.

This version has got a BIS certification. Its other versions with model numbers 2201117TG, 2201117TY, and 2201117SY have also cleared EEC certification.

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