Samsung Faces $601 Mn Fines

Govt has ordered Samsung, its executives to pay taxes for dodging tariffs on import of key telecoms equipment

- Reuters

India has ordered Samsung and its executives in the country to pay $601 million in back taxes and penalties for dodging tariffs on import of key telecoms equipment, a government order showed, for one of the biggest such demands in recent years.

The demand represents a substantial chunk of last year's net profit of $955 million for Samsung in India, where it is one of the largest players in the consumer electronics and smartphones market. It can be challenged in a tax tribunal or the courts.

The company, which also imports telecoms equipment through its network division, received a warning in 2023 for misclassifying imports to evade tariffs of 10% or 20% on a critical transmission component used in mobile towers.

It imported and sold these items to billionaire Mukesh Ambani's telecom giant, Reliance Jio.