NEW DELHI: Income tax authorities conducted search operations on Chinese telecom major Huawei’s offices in Delhi, Gurgaon and Bangalore, months after a similar action against ZTE.
The raids started in the morning and continued through the day. Tax officials also questioned Huawei India’s senior management, looking at documents around the financial dealings of the company. It is yet not clear whether Huawei In dia MD David Li was also questioned, although the Chinese headquarters of the company is now keeping a close watch on the developments.
“We have been informed of the v isit of the Income T ax 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 g overnment departments for more information and fully cooperate,” the company said.
After the raids at ZTE, the government said it unearthed a variety of infringements, including massive tax evasion, bogus expenses worth hundreds of crores, illegal share purchases and currency exchange and accounting discrepancies.
Some of the prominent Chinese mobile handset makers including Oppo and Xiaomi too have been under the lens of tax authorities. It is also looking at concealment of income and other doubtful financial transactions conducted by the gamut of Chinese companies operating in the telecom and electronics space.
The action against Huawei, which is now virtually out of the reckoning for supplying 5G telecom equipment, comes amidst the tough stand that the government has taken against Chinese companies as r elations between the countries remain cold due toborder disputes.
On Monday, the information technology ministry had also initiated fresh action against 54 Chinese apps accusing some of them of posing a threat to the country, taking the number of companies that have faced action to over 300 now.
While tax authorities did not comment on the details of the probe or action against Huawei, sources said some of the company’s financial transactions were being looked into and details would be disclosed once there are concrete findings.
The role of Huawei and ZTE in the global telecom equipment business is facing scrutiny, as also the former’s owner ship and links with PLA. Several countries including Australia and the UK fear that Chinese authorities may be using the two players, known to offer cheaper equipment, to keep tabs on networks. Fearing a similar threat, the government has now decided to allow telecom companies to buy equipment only from certified “trusted source”.
The raids started in the morning and continued through the day. Tax officials also questioned Huawei India’s senior management, looking at documents around the financial dealings of the company. It is yet not clear whether Huawei In dia MD David Li was also questioned, although the Chinese headquarters of the company is now keeping a close watch on the developments.
“We have been informed of the v isit of the Income T ax 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 g overnment departments for more information and fully cooperate,” the company said.
After the raids at ZTE, the government said it unearthed a variety of infringements, including massive tax evasion, bogus expenses worth hundreds of crores, illegal share purchases and currency exchange and accounting discrepancies.
Some of the prominent Chinese mobile handset makers including Oppo and Xiaomi too have been under the lens of tax authorities. It is also looking at concealment of income and other doubtful financial transactions conducted by the gamut of Chinese companies operating in the telecom and electronics space.
The action against Huawei, which is now virtually out of the reckoning for supplying 5G telecom equipment, comes amidst the tough stand that the government has taken against Chinese companies as r elations between the countries remain cold due toborder disputes.
On Monday, the information technology ministry had also initiated fresh action against 54 Chinese apps accusing some of them of posing a threat to the country, taking the number of companies that have faced action to over 300 now.
While tax authorities did not comment on the details of the probe or action against Huawei, sources said some of the company’s financial transactions were being looked into and details would be disclosed once there are concrete findings.
The role of Huawei and ZTE in the global telecom equipment business is facing scrutiny, as also the former’s owner ship and links with PLA. Several countries including Australia and the UK fear that Chinese authorities may be using the two players, known to offer cheaper equipment, to keep tabs on networks. Fearing a similar threat, the government has now decided to allow telecom companies to buy equipment only from certified “trusted source”.
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