Here's why Samsung has come under the Indian govt's scanner


by 5paisa Research Team Last Updated: Jan 12, 2023 - 03:57 pm 4.5k Views
Listen icon

The Indian arm of South Korean electronics conglomerate Samsung is in the government’s crosshairs. 

The Directorate of Revenue Intelligence (DRI) has issued a show cause notice to Samsung India Electronics (SIEL), The Economic Times reported on January 12. 

The agency has asked the South Korea's Samsung Electronics why it should not recover the Rs 1,728.47 crore along with interest for alleged customs duty evasion, according to the report. The notice was issued by Nhava Sheva Customs earlier this week, it added.

So, what exactly is the issue here?

According to the report, the issue pertains to alleged misdeclaration and misclassification of remote radio head (RRH), a networking device, by Samsung India to avail undue exemption of basic customs duty. SIEL had hired PwC for classification of the network equipment, which is under scanner.

What more has the DRI notice said?

The DRI, in the notice, has also asked why a penalty should not be imposed against the senior management of the company. Reportedly, it has also issued the notice to PricewaterhouseCoopers Pvt Ltd (PwC) and an associate director, who was questioned during the probe. SIEL, PwC have 30 days to reply to notice.

What has Samsung said on the matter?

Samsung Electronics' Indian unit is reviewing a government notice related to a tax dispute, it said on Thursday. 

"This is a tax dispute involving interpretation of law. We are reviewing the notice and are exploring legal opinion," a Samsung India spokesperson said in an email according to a Reuters report, but did not give further details, including on specifics about the tax dispute.

How do you rate this blog?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.

Open Free Demat Account
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest Blogs
Best EV Stocks in India 2024

As India shifts to a greener future, the electrically powered cars and trucks market will rise significantly in 2024. This article investigates the best EV stocks in India, highlighting firms leading the way in innovation, sustainability, and market capitalization.

Best Banks in India 2024

Navigating the many options for banking services becomes a crucial task for both individuals and enterprises as we enter the Indian financial scene in 2024. The top banks in India provide a wide range of services that extend beyond traditional banking, serving as cornerstones of the country's financial stability. These best banks in India offer individualized client care and state-of-the-art digital solutions that reflect the changing needs of the financial industry. 

SEBI's Small-Cap Advisory: Are The Markets Frothy

Retail investors and mutual funds have driven a remarkable surge in the value of Indian mid and small-cap stocks over the past six months.