Computer research in Chinese telecommunications companies


NEW DELHI: The Income Tax Service is conducting nationwide research against major Chinese telecommunications companies, including Xiaomi, Oppo and OnePlus, in investigations related to alleged revenue concealment.
Sources said operations, which began on Tuesday and continued on Wednesday, covered more than a dozen sites, including Bengaluru and Gurgaon.
The latest action follows a similar operation involving ZTE, the Chinese handset and equipment supplier, which allegedly issued compromising data. Some subcontractors and suppliers of these Chinese players are also under the scanner
While separate investigations have been launched by other economic agencies, income tax sources have not ruled out the possibility of a multi-agency investigation against some of the companies.
Although the tax office usually publishes information on searches almost daily, it chose to remain silent on Wednesday.
In an emailed statement, a spokesperson for Xiaomi said: “As a responsible company, we attach paramount importance to compliance with all Indian laws. As a partner invested in India, we are cooperating fully with the authorities to make sure they have all the information they need. ”
A separate statement on behalf of Oppo said: “As a vested partner in India, we highly respect and respect the law of the land. We will continue to cooperate fully with the relevant authorities in accordance with due process.”
Chinese telecoms companies face actions across the globe, with the government also revising standards to allow Indian service providers to source equipment only from “trusted sources,” a move that should ban Huawei and ZTE the Indian market.
In recent months, Chinese companies have been in the spotlight in the country with several applications already banned and an orderly crackdown on e-commerce companies that surreptitiously sell products in India.
Shortly after the Covid-19 outbreak last year, FDI rules were tightened to allow companies from China and other countries sharing a land border with India only by way of approval. In addition, there are restrictions on the award of government contracts to Chinese companies.


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