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Samsung challenges Indian government in tax tribunal, accuses company of saving tariff of ₹4,451 crore
Samsung: The Income Tax Department alleges that Samsung misclassified the import of telecom equipment, which saved the company from tariffs ranging from 10% to 20%.
There is an intense clash between the behemoth tech giant Samsung and the government of India in the realm of tax. The government demanded Rs 4,451 crore ($520 million) in tax from the corporation, against which Samsung approached the tax tribunal.
The Income Tax Department charges that Samsung under-declared the import of telecommunication equipment, thereby evading tariffs of 10-20%. These are the same equipment that have been sold by Samsung to Reliance Jio and which have found use in mobile towers.
Samsung says that the tax officials themselves were aware of this classification, and Reliance Jio was also warned on the same issue in 2017, but they were never informed about it. The company claims that if it had been told on time, it would have made the changes earlier. Not only this, the government has also imposed a fine of Rs 693 crore ($ 81 million) on 7 senior officials of Samsung.
