China’s mobile handset company Xiaomi has got a big relief in a case related to money laundering. 37 billion rupees kept in the fixed deposits of the company were frozen, which have now been released. Know what is the whole matter…
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Chinese company making mobile handsets Xiaomi Corp. A Karnataka court has given a big relief. money laundering and tax evasion (Tax Evasion Case) Income Tax Department due to a case related to (Income Tax Department) had frozen the company’s fixed deposits worth about Rs 37 billion. The court has rejected this order to freeze the funds.
Reuters has reported quoting sources that a court in Karnataka has released the frozen funds of the company. The Income Tax Department had frozen the company’s funds in February this year. The company is under investigation for alleged tax evasion.
According to the news, the detailed copy of the Karnataka court could not be received till late Friday evening. At the same time, no response has been received from Xiaomi or the Income Tax Department in this regard.
This case going on against Xiaomi
There is an allegation against Xiaomi of buying completely made handsets at a higher price from companies making mobile phones in India itself. On the basis of this, he has shown his profit by reducing it. And thus he has committed the alleged evasion of corporate income tax.
Investigation underway under FEMA as well
Apart from this, investigation related to money laundering is also going on against Xiaomi India. It is alleged that the company transferred money to these three companies working abroad without taking service. The company sent this amount in the name of royalty by making several fake documents, which is a violation of Section-4 of FEMA. Section-4 of FEMA is related to the holding of foreign exchange.
Xiaomi India sent such a huge amount under the guise of paying royalty. In this, a foreign company belongs to Xiaomi group. While two other companies are from America, but Xiaomi’s companies also got the final benefit from them. The Indian unit of the group transferred this amount to these companies at the behest of the Chinese parent company.