Over suspected evasion of duty on import of network equipment at the offices of South Korean firm Samsung electronics, searches have been carried out by the Directorate of Revenue Intelligence (DRI) officials, Searches began at the Delhi and Mumbai offices of the company while the findings of the DRI are not yet confirmed, according to a report released by Business Today.
Being the company’s regional headquarters, the Directorate of Revenue Intelligence officials visited the Gurugram office along with the Mumbai office as the networking operations are mainly there while a statement is yet to be made by Samsung Electronics.
Along with being an exclusive 4G equipment provider to Reliance Jio Infocomm, in terms of volume, the company is the largest 4G vendor in the nation.
On import of telecom products manufactured in its home base and Vietnam, under the Free Trade Agreement (FTA) route, the company enjoys zero duty.
Making the equipment liable for duty, according to an Intel received by the government stated that the equipment was made in a non-FTA country along with being rooted through South Korea or Vietnam, as per a person in the know told The Daily.
Under the free trade pact between the two nations, Duty-free status is being enjoyed by most South Korean network gear suppliers. Aiming to develop cooperation between the two nations to modernize, develop and expand telecom services along with the next-gen Wireless networks, the countries are signatories to a memorandum of understanding.