New Delhi, Aug 6 : For Chinese manufacturing and processing firms who initially attempted to create India an overseas processing centre for products in the event that it proves becoming increasingly difficult and unprofitable to run in the country, resigning from India is also an option, the state-owned Global Times has said.The Indian government is investigating the cases of tax evasion allegedly committed through three Chinese mobile companies -three of them – OPPO, Vivo India and Xiaomi.
“Frequent inquiries of the Indian side into Chinese companies not only interfere with the normal business operations however, they also hinder the improvement of the business conditions in India and dampens the trust and confidence of market-based entities, and particularly Chinese companies to invest and operate in India,” read the article’s note in the magazine.
Since April 2020 In the month of April 2020, of a total of 382 foreign direct investment (FDI) plans the central government got from Chinese companies, India approved only 80 as of June 29.
“The number reflects the ever difficult business environment for Chinese investment and companies that do business in India,” the report stated.
A few producers have turned their attention towards Southeast Asian countries such as Vietnam after pulling out of India.
“Faced with competition from Vietnam, India should no longer create obstacles to its manufacturing progress and should stop conducting a crackdown on Chinese investment,” the report added.
Despite the pandemic of Covid-19, the trade between China and India is currently poised to surpass $100 billion for the second time in a row since it has increased to $67.1 billion in the first half of 2022.
“Hopefully India can provide a equitable and non-discriminatory conditions for Chinese investors that will be mutually beneficial for both Chinese companies and India’s manufacturing ambitions” the statement read.
OPPO India, Xiaomi India and Vivo India were served notices by the Directorate of Revenue Intelligence (DRI) to stop duty evasion Finance Minister Nirmala S.Sitharaman told the Rajya Sabha this week.
A show-cause demand for the sum of 4,403.88 million has been sent to OPPO Mobiles India Ltd based on an investigation by the DRI, and five instances of Customs duty fraud have been filed against Xiaomi Technology India, Sitharaman stated in an email response.
The DRI discovered customs duty avoidance of approximately Rs 2,217 crores from Vivo Mobile India Private Ltd.
A show-cause notice was sent to Vivo India demanding customs duty in the amount of Rs.2,217 crore under the rules of the Customs Act.
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