Samsung Paid Rs 300 Crore for 4G Gear Import

This was the largest payment that the company has made in a single day to India. The report mentions that the payment from Samsung has already been credited into the account of the government.

Highlights

  • Samsung has paid Rs 300 crore to the DRI as customs duty for importing 4G radio equipment
  • Samsung is the largest vendor for 4G radio heads when it comes to volume
  • The payment from Samsung has already been credited into the account of the government

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Samsung has paid Rs 300 crore to the Directorate of Revenue Intelligence (DRI) as customs duty for importing 4G radio equipment into India. The DRI was investigating the company’s alleged tax evasion in importing the 4G radio equipment to India. The DRI has concluded that Samsung had been classifying its equipment under the zero-duty category so that it could be exempted from paying any taxes. As per the agency, Samsung will now have to pay Rs 500 crore for exempting taxes.

Samsung Has Already Paid Rs 300 Crore

According to an ET Telecom report, out of the total amount that Samsung needs to pay, the company has already paid Rs 300 crore. A source aware of the matter told the publication that Samsung made the payment on Wednesday (August 18). The leftover balance will be paid by the company as the investigation proceeds.

The source added that Samsung was the only company that was importing its equipment under the concerned category head. This was the largest payment that the company has made in a single day to India. The report mentions that the payment from Samsung has already been credited into the account of the government.

For the unaware, Samsung is the largest vendor for 4G radio heads when it comes to volume. The 4G radio heads are used to transmit and covert 4G airwaves. Earlier last month, the DRI had conducted an investigation at the Mumbai and Delhi offices of Samsung to check the suspected evasion of import duty on the 4G radio equipment.

Upon investigating, it was found that Samsung was importing its 4G equipment, claiming an exemption notification that was not applicable on the equipment and thus, the company was not paying 20% of taxes it needed to. At the same time, all the other companies were paying 20% taxes on the same equipment. Thus the DRI has asked Samsung to pay Rs 500 crores.

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Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

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