• Notification Date: 17-02-2022
• Notification No: N/A

Chinese Telecom Company Huawei searched by Income Tax Department

Chinese Telecom major Huawei premises have been searched by the IT department. The Income-tax department has accused Huawei of tax evasion. Several premises of the company in India have been investigated by the IT department according to the report of the officials on Wednesday.

IT officials have investigated the Huawei premises situated in Delhi, Gurugram, and Bengaluru in Karnataka on Tuesday. The department has been conducting several raids in the company premises to discover the tax evasion made by the company. The financial documents account books, and company records of Huawei have been thoroughly checked by the officials. The Indian businesses and the overseas transactions made by the company have been investigated by the IT officials.

Some of the records that appeared to be suspicious have been seized by the Income-tax officials. According to the company, their business operations were firmly aligned with the law compliances.

According to the statement of Huawei, the business operations of the company in India are compliant with the laws and regulations. The company has stated that they were previously informed about the visit of the Income-tax team and they will approach the related Government departments for further details of the investigation. Huawei has committed to cooperating with the investigation completely and following the procedures as instructed by the IT department.

The Government has forbidden Huawei from the trials for 5G services. The telecom operators can source telecom from Huawei and ZTE as per the former agreements. The National Security Directive on Telecommunication Sector has instructed that the operators will have to seek the approval of the government before getting into any new business agreement with Huawei.

The Income-tax department had discovered an amount of Rs.6,500 crores of unaccounted income from the premises of Chinese mobile manufacturing companies Xiaomi and Oppo last year. The department had conducted investigations in the companies that manufacture the mobile communication and handsets for these Chinese brands. The companies and several other individuals related to the production had been violating the rules of the Indian tax law and regulations. 

The Information and Technology ministry of India had blocked 54 other Chinese apps this week. Several frozen assets of the Chinese-controlled companies and non-banking financial companies (NBFC) have been confiscated by the Enforcement Directorate (ED).