In a major crackdown upon Chinese mobile companies, the Income Tax department is conducting searches on leading Chinese mobile companies across the country.
More than 2 dozen premises are protected in the search which started on Tuesday.
“Raids are ongoing within Delhi, Mumbai, Bengaluru, Greater Noida, Kolkata, Guwahati, Indore, and some other places, ” resources told ANI.
Sources told ANI that some fintech companies are also covered in this search.
Chief Executive Officers of those companies are covered in this search and currently, they are being interrogated by the Income Tax sleuths.
Further, resources informed that the search was conducted on the intelligence inputs of huge tax evasion by these Chinese mobile firms. They were under the radar for a long time and when the income tax department got concrete intelligence of tax evasion then raids were conducted upon these companies.
Based on sources, it is early in order to reveal details about the on-going search as the sleuths take job but a substantial amount of electronic data evidencing evasion of tax has been found and seized.
Earlier in August, a Chinese government-controlled telecom vendor, ZTE was searched. Searches were conducted at a total associated with five premises of ZTE, including the corporate office, the particular residence of the foreign director, the residence of the business secretary, the account person and the cash handler of the company.
Throughout the search on ZTE, the examination of import bills vis-a-vis sale bills shows that there was the gross profit of approximately 30 percent on the trading of the equipment, though the company had been reservation “huge” losses over the years.
Investigation revealed how the losses are being booked by company through bogus expenses in respect of services provided by this. A few such recipients have been identified in whose claim substantial expenses have been reserved over the years. These entities are already found to be non-existent on their addresses, sources added.