CBDT claims Huawei manipulated to show less taxable income in India

The Income Tax Department has detected alleged manipulation of books of Chinese telecom company Huawei to understate taxable income in India. Sources gave this information on Thursday.

It is worth noting that the Income Tax Department had recently raided Huawei.

In a statement, the Central Board of Direct Taxes (CBDT) said the searches were conducted on February 15 at the core business and residential premises of ‘key functionaries’ of a multinational company that provides services related to distribution of telecom products and software development.

Sources have identified the company as Huawei.

“The final stake of the group is held by a foreign entity in the neighboring country,” the CBDT said.

The CBDT alleged that the group “manipulated the books of account to understate its taxable income in India, such as provisions for depreciation, provisions of warranties, doubtful debts and advances etc. While there is no scientific/financial basis for this move.

“During the course of investigation, the group has failed to provide any sufficient and just cause for such claims,” ​​the statement alleged.

The company had said during the search that it was strictly complying with the Indian laws.