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HomeEntertainmentEnforcement Directorate Raids Vivo India And Associated Business In Money Laundering Probe!!!

Enforcement Directorate Raids Vivo India And Associated Business In Money Laundering Probe!!!

Vivo Updates: In conjunction with a case involving Vivo and other Chinese companies and the prevention of money laundering, the Enforcement Directorate (ED) was conducting searches at 40 locations in Uttar Pradesh, Madhya Pradesh, Bihar, and southern states.

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SEVERAL OTHER CHINESE COMPANIES’ SITES WERE ALSO BEING EXAMINED, ACCORDING TO SOURCES, IN ADDITION TO THE VIVO OFFICE:

As of the today, neither Vivo nor ED officials have made any statements. The CBI has been looking into the situation as well and has filed a second FIR.

According to the ED, in connection with Xiaomi Technology India Private Limited’s unauthorised outward remittances, they seized Rs 5,551.27 crore from the company’s bank accounts in April. This was done in accordance with the provisions of the Foreign Exchange Management Act.

After then, the company had released a statement that said, “We carefully reviewed the federal authorities’ order. We believe all of our bank records and royalties payments to be true and accurate.

These royalties were paid by Xiaomi India for the in-licensed technology and intellectual property (IP) used in our products’ Indian versions. The payment of such royalties by Xiaomi India is a legal commercial arrangement.

To clear up any ambiguities, however, we are dedicated to collaborating closely with governmental authorities.”
The Income Tax Department had reported on March 3 that they had conducted searches against Chinese enterprises selling telecom products and discovered that the companies were engaging in tax fraud by using false invoices.
At that time, the I-T department had discovered a 400 crore rupee revenue suppression.

Vivo

THROUGHOUT INDIA AND THE NATIONAL CAPITAL REGION, THE RAIDS WERE CARRIED OUT THROUGHOUT THE SECOND WEEK OF FEBRUARY:

The searches had shown that the Chinese companies had paid inflated amounts for technical services received from connected parties outside of India.
The assessee companies were unable to demonstrate the validity of the purported technical services for which payment had been received or the basis for determining the value for those services.
The search action had further revealed that different companies had manipulated their books of account to lower their taxable income in India by adding various provisions for expenses, such as provisions for obsolescence, provisions for warranty, doubtful debts and advances, etc., that have little to no sound financial justification.
The organisations had been asked to support their assertions during the probe, but they had failed to do so.The business claimed to be coordinating with law enforcement to resolve any issues.

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