The Income Tax Department has disclosed the tax evasion done by a big telecom company of China. During investigation, it was found that the company has evaded tax to the tune of Rs 400 crore. In a report, quoting sources, it has been said that the smartphone maker Huawei committed the theft by manipulating the books. The Central Board of Direct Taxes (CBDT) issued a statement in this regard, saying that the team of Income Tax officers had raided the office of a telecom company on February 15. Apart from the company’s office, the houses of top officials were also raided. It was told by the department that this company provides captive software development services along with distribution of telecom products. According to the report, the sources had identified this company as Huawei.
The CBDT alleged that this telecom company had rigged its accounts so that it had to pay less tax in India. According to the report, the company had disclosed its funds in the form of provisioning of warranties, doubtful loans and advances to show taxable income. It was clarified by the board that no concrete evidence was presented by the company to rule out this huge tax evasion.
Documents were confiscated by the officials
It is worth mentioning that during the raid, the Income Tax Department officials checked the financial documents and books of the company to investigate tax evasion against the company, its Indian business and foreign transactions. According to the report, the Income Tax team had also seized some documents from these places. However, the company has clarified itself from the allegations of tax evasion and said that its operations in India are being done completely under the law.