Huawei accused of Tax Evding in India

Chinese telecommunications equipment maker Huawei has attempted to evade India by manipulating its books for several years, tax officials said Thursday. A tax audit on the company premises last month discovered an attempt to reduce taxable income through a variety of financially unjustified expenses.

"On February 15, the Income Tax Department conducted a search and seizure operation at a multinational company. The group's ultimate ownership lies within a foreign company,” the statement said.

India has issued a tax demand of Rs 653 crore to Xiaomi Technology India Pvt. Ltd earlier for violating the Customs Act, claiming that the company does not include royalty and license fees in the value of its imports.

Chinese companies are being monitored in India as part of a broader economic response to China after a collision in Ladakh in 2020. A state-sponsored threat actor group China, known as Red Echo, also targeted the infrastructure of India's power sector infrastructure, regional load dispatch centres and state load dispatch centres.

India has also banned more than 200 Chinese apps that allegedly collected sensitive user data. It also carefully monitor imports to prevent goods from China from being dumped into the country via other countries.