Samsung fights India's $520 mn tax demand

Samsung has asked an Indian tribunal to quash a $520 million tax demand for allegedly misclassifying imports of networking gear, arguing officials were aware of the practice as India's Reliance imported the same component in a similar manner for years, documents show.

- Reuters

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Samsung becomes the second major foreign company in recent months to challenge an Indian tax demand.

Volkswagen has sued Prime Minister Narendra Modi's government in court for a record demand of $1.4 billion for misclassifying its component imports.

In the Samsung case, tax authorities in January asked Samsung to pay $520 million for evading the 10-20% tariffs by misclassifying imports of a key mobile tower equipment, which it then sold to billionaire Mukesh Ambani's telecom giant, Reliance Jio, from 2018 to 2021.