Lagatar24 Desk
New Delhi, Feb 16: Official sources said on Wednesday that the Income-tax Department had conducted searches at numerous locations in the country where Huawei, a Chinese telecom corporation, operates as part of a tax evasion probe.
On Tuesday, raids were carried out at the company’s offices in Delhi, Gurugram (Haryana), and Bengaluru (Karnataka).
Officials examined financial documents, account books, and corporate records as part of a tax evasion probe into the corporation, its Indian businesses, and offshore activities, according to sources. They also claimed that some records had been confiscated.
The company stated that its operations in the country were “completely legal.”
“We have been informed of the visit of Income Tax team to our office and also of their meeting with some personnel. Huawei is confident our operations in India are firmly compliant to all laws and regulations. We will approach related Government departments for more information and fully cooperate as per the rules and regulations and follow the right procedure,” the company said in a statement.
Income Tax Department conducting searches at Chinese telecom company Huawei as part of a tax evasion investigation. Raids are going at the company's premises in Delhi, Gurugram, and Bengaluru in Karnataka since yesterday.
— ANI (@ANI) February 16, 2022
The government has kept Huawei out of trials for 5G services.
Telecom operators have been authorised to purchase telecom gear from Huawei and ZTE under their old agreements for network maintenance, but they will need government clearance before entering any new business arrangements, according to the National Security Directive on Telecommunication Sector.
Last year, the tax department conducted searches against Chinese mobile communication and handset manufacturing companies Xiaomi and Oppo, as well as their related entities, claiming to have discovered alleged unaccounted income worth over Rs 6,500 crore as a result of violations of Indian tax laws and regulations.
The Information and Technology Ministry prohibited 54 more Chinese-linked apps earlier this week, claiming security and privacy concerns, including Tencent Xriver, Nice Video Baidu, Viva Video Editor, and gaming app Garena Free Fire Illuminate.
In India, the Enforcement Directorate (ED) has searched and frozen the assets of Chinese-controlled enterprises and non-banking financial organisations (NBFCs) that provide rapid loans using smartphone apps.
The increased action against Chinese-backed companies and entities operating in India comes amid a military standoff in eastern Ladakh.
