The Income Tax (IT) Department has said that Huawei Telecommunications India had resorted to unlawful means in order to evade paying taxes in India. The unit of Chinese technology company Huawei had allegedly sent back huge sums of money in the last two financial years, even when its income had slowed. According to sources, the IT department believes that the unit had repatriated Rs750 crore to its parent company in the form of dividends and other incomes so as to avoid paying taxes in India.
As such, the IT department has frozen the company’s accounts in February and is investigating the matter. The sources say that the company had given a huge number of its account details but the department had found many discrepancies in the transactions. However, the department has been given access to the contact details of the head who is the decision-making authority on transfer-pricing issues.
Huawei is one Chinese company that has been under scrutiny for several years now. The IT department has conducted multiple raids at the company’s premises in Bengaluru, Delhi, and Gurugram and seized many account books. the authorities have claimed that there are serious discrepancies in the income reported by the company. The department filed a case against the company for withholding information. In June, the Delhi High Court summoned Huawei India’s CEO Li Xiongwei, Deputy CFO Sandeep Bhatia, Head of Tax Amit Duggal, and Head Of Transfer Pricing, Long Cheng for the case.
