Samsung is contesting a substantial tax demand in India. The company is accused of misclassifying imported networking equipment. Samsung argues that Indian officials were aware of this practice. Reliance Jio, another Indian company, imported similar components without tariffs. Samsung claims Reliance did not inform them of a prior tax warning. The tax demand and fines total $601 million.
Samsung has asked an Indian tribunal to quash a $520 million tax demand for allegedly misclassifying imports of networking gear, arguing officials were aware of the practice as India’s Reliance imported the same component in a similar manner for years, documents show.
Samsung becomes the second major foreign company in recent months to challenge an Indian tax demand.
Volkswagen has sued Prime Minister Narendra Modi’s government in court for a record demand of $1.4 billion for misclassifying its component imports. In the Samsung case, tax authorities in January asked Samsung to pay $520 million for evading the 10-20% tariffs by misclassifying imports of a key mobile tower equipment, which it then sold to billionaire Mukesh Ambani’s telecom giant, Reliance Jio, from 2018 to 2021. Read more at: https://economictimes.indiatimes.com/news/company/corporate-trends/samsung-fights-520-million-india-tax-demand-points-to-reliance-practice/articleshow/120866715.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
