The Indian government could impose a fine of Rs 1,000 crore on Chinese smartphone makers Xiaomi and Oppo. On December 21, 2021, the Income Tax Department raided these two companies as well as the units associated with these two companies. It was found that there was a violation of rules regarding transactions under the Income Tax Act. Companies can be fined by the department for this. The Income-tax department found in the search a reduction in taxable profit of over Rs 1,400 crore. In which it is said that the rules have been followed by the companies under the Income Tax Act.
He could be prosecuted under the IT Act. In the meantime, companies under 1961 could be fined Rs 1,000 crore or more. However, the statement did not name either firm. Media reports have confirmed the search operation in Xiaomi and Oppo.
The investigating agency said the alleged lender was not certain. On which there is also a claim for interest expenses. Telecom operator ZTE was searched by the Chinese government in August.