BR100 Decreased By (-0.28%)
BR30 Decreased By (-0.09%)
KSE100 Decreased By (-0.18%)
KSE30 Decreased By (-0.25%)
AGHA 7.75 Decreased By ▼ -0.06 (-0.77%)
BECO 5.18 Decreased By ▼ -0.03 (-0.58%)
BML 57.87 Increased By ▲ 0.37 (0.64%)
BOP 34.25 Increased By ▲ 0.22 (0.65%)
CNERGY 10.00 Increased By ▲ 0.04 (0.4%)
CSIL 5.35 Increased By ▲ 0.04 (0.75%)
FCCL 54.55 Decreased By ▼ -0.15 (-0.27%)
FFL 16.60 Decreased By ▼ -0.09 (-0.54%)
FNEL 1.25 Increased By ▲ 0.02 (1.63%)
KEL 7.29 Decreased By ▼ -0.11 (-1.49%)
KOSM 5.78 Increased By ▲ 0.01 (0.17%)
LOTCHEM 29.38 Increased By ▲ 0.06 (0.2%)
MLCF 93.85 Decreased By ▼ -0.51 (-0.54%)
NBP 201.90 Decreased By ▼ -1.15 (-0.57%)
NCPL 57.00 No Change ▼ 0.00 (0%)
NPL 67.70 No Change ▼ 0.00 (0%)
OGDC 316.68 Increased By ▲ 0.84 (0.27%)
PACE 10.60 Decreased By ▼ -0.04 (-0.38%)
PAEL 42.90 Decreased By ▼ -0.30 (-0.69%)
PIBTL 16.65 Decreased By ▼ -0.09 (-0.54%)
PPL 219.00 Decreased By ▼ -0.78 (-0.35%)
PRL 50.20 Increased By ▲ 1.01 (2.05%)
PTC 70.79 Increased By ▲ 0.26 (0.37%)
SSGC 27.75 Decreased By ▼ -0.50 (-1.77%)
TBL 9.78 Decreased By ▼ -0.08 (-0.81%)
TELE 8.73 Decreased By ▼ -0.06 (-0.68%)
TPL 18.62 Increased By ▲ 0.38 (2.08%)
TPLP 13.57 Increased By ▲ 0.30 (2.26%)
TREET 22.65 Decreased By ▼ -0.07 (-0.31%)
TRG 60.20 Increased By ▲ 0.06 (0.1%)
By

NEW DELHI: Samsung has asked an Indian tribunal to quash a $520 million tax demand for allegedly misclassifying imports of networking gear, arguing officials were aware of the practice as India’s Reliance imported the same component in a similar manner for years, documents show.

Samsung becomes the second major foreign company in recent months to challenge an Indian tax demand.

Volkswagen has sued Prime Minister Narendra Modi’s government in court for a record demand of $1.4 billion for misclassifying its component imports.

In the Samsung case, tax authorities in January asked Samsung to pay $520 million for evading the 10-20% tariffs by misclassifying imports of a key mobile tower equipment, which it then sold to billionaire Mukesh Ambani’s telecom giant, Reliance Jio, from 2018 to 2021.

In its 281-page challenge at the Customs Excise and Service Tax Appellate Tribunal in Mumbai, Samsung criticises Indian authorities for being “fully aware” of the business model as Reliance had a “long-established practice” of importing the same equipment without any tariff payments for three years until 2017.

Samsung’s India unit says it discovered during an Indian tax investigation that Reliance had been warned about the practice way back in 2017, but Reliance did not inform the South Korean company about it and tax officials never questioned Samsung.

“The classification adopted by the appellant (Samsung) was known to the authorities, however the same was never questioned ... Department was fully aware,” Samsung says in its April 17 filing, which is not public but was seen by Reuters.

“Reliance Jio officials did not inform” Samsung about the tax warning of 2017, it adds.

Samsung and India’s tax authority did not respond to Reuters queries.

Further details of Reliance’s 2017 warning from tax authorities are not public and were not disclosed in the Samsung filing. Reliance didn’t respond to Reuters queries.

Other than $520 million demand Samsung faces, Indian authorities have also imposed an $81 million fine on seven of its employees, taking the total tax demand to $601 million. It’s not clear if Samsung employees are separately challenging the fines.

Comments

Comments are closed for this article.