On Wednesday, the Ministry of Finance stated the Directorate of Revenue Intelligence (DRI) found around Rs 2,217 crore in tax evasion by smartphone maker Vivo India, a subsidiary of China’s Vivo Communications Technology.

It said that during the investigation, DRI officials searched Vivo India’s factories and found evidence of willful misrepresentation in describing certain items it imports to manufacture mobile phones.

The false positives led to Vivo India’s misuse of ineligible tax-free benefits totalling Rs 2,217 crore, the statement said.

It added that upon completion of the investigation, a show-cause notice had been issued to Vivo India for the imposition of duties totalling Rs 2,217 crore under the Customs Act 1962.

Vivo India has voluntarily deposited Rs 60 crore to meet its differential tariff obligations, the statement said.
Vivo Mobile India Private Limited or Vivo India is a subsidiary of Vivo Communication Technology Co Ltd in Guangdong Province, China, engaged in manufacturing, assembly, wholesale trade and distribution of mobile phones and accessories.

Recently, in another set of investigations conducted by DRI, Oppo Mobiles India Private Limited received a show cause notice for the payment of customs duties of Rs 4,403.88 crore.