Chinese Mobile, Fintech Companies Said to Face Searches by IT Department Across India

Taking a major crackdown on Chinese mobile companies, Income Tax Department is conducting raids on major Chinese mobile companies across the country.

including mobile companies Opposition, Xiaomi, And one plus are being included in this search, sources told ANI on Wednesday.

More than two dozen premises are involved in the searches that started on Tuesday.

“Raids are on in Delhi, Mumbai, Bengaluru, Greater Noida, Kolkata, Guwahati, Indore and some other places,” sources told ANI.

Sources told ANI that some fintech companies are also involved in the search.

The CEOs of these companies are involved in the search and are currently being questioned by Income Tax officials.

Further, the sources said that the discovery was made on intelligence inputs of huge tax evasion by these Chinese mobile firms. They were on the radar for a long time and when the Income Tax Department got concrete information about tax evasion, these companies were raided.

According to sources, it is too early to give details about the ongoing searches as investigative officers are on the job but a substantial amount of digital data showing evidence of tax evasion has been found and seized.

Earlier in August, a Chinese government-controlled telecom vendor, ZTE was searched. Searches were conducted at five ZTE premises including corporate office of the company, residence of foreign director, residence of company secretary, account person and cash handler of the company.

During a search on ZTE, an examination of import bills compared to sales bills showed that the equipment had a gross profit of about 30 percent on business, although the company had been booking “huge” losses for years.

The investigation revealed that losses are being booked by the company by way of fraudulent expenses in respect of the services provided by the company. Certain recipients have been identified in whose cases substantial expenditure has been recorded over the years. Sources said that these institutions have been found to be non-existent at their addresses.