The Indian government recovered 558 million yuan in taxes from Xiaomi Xiaomi responded: This is not the final result

Figure: Figure worm

Source: 21tech

Author: Poplar

Editor: Zhang Weixian

According to the Observer Network, on January 5, local time, the Indian Ministry of Finance issued a statement saying that the Indian Tax Intelligence Agency (DRI) has issued a notice to Xiaomi Technology India to recover about 653 million rupees (about 558 million yuan) of taxes to the company.

According to the Ministry of Finance documents, the evidence collected by the Indian Revenue Intelligence Agency during the investigation shows that neither Xiaomi India nor its contract manufacturers included the "royalty amount" paid by Xiaomi India in the appraised value of its imported goods, in violation of india's Customs Act and customs valuation rules.

In this regard, Xiaomi responded to the 21st Century Economic Herald that Xiaomi adheres to legal and compliant operations around the world and abides by the relevant laws and regulations of the place of operation. The root cause of this tax problem is that there are differences between the parties on the price determination of imported goods. Whether royalties, including patent royalties, should be included in the price of imported goods is a complex technical dilemma in all countries.

Xiaomi said that the Indian authorities required Xiaomi to pay back the import tax related to the royalties between April 1, 2017 and June 30, 2020, which has nothing to do with Xiaomi's recent business, and the official statement is not the final result. On this issue, Xiaomi will also continue to communicate with the relevant departments in India.

Editor: Lu Taoran