 |
Photo = Samsung Electronics |
[Alpha Biz= Kim Jisun] According to a Reuters report on Tuesday (local time), the Indian government has ordered Samsung Electronics to pay approximately 900 billion KRW ($900 million) in back taxes and penalties, alleging that the company evaded tariffs on imported telecom equipment.
Indian tax authorities claim that Samsung deliberately misclassified imported telecom components to avoid 10% or 20% import duties. The key component in question is the "Remote Radio Head", a small radio frequency circuit module essential for 4G base stations to transmit signals.
Authorities determined that between 2018 and 2021, Samsung imported $784 million (approximately 1.15 trillion KRW) worth of these parts from South Korea and Vietnam without paying customs duties. Samsung had previously argued—submitting evaluations from four experts—that the component lacked transceiver functionality, classifying it as a duty-free item.
However, Indian authorities countered by citing a 2020 letter from Samsung, in which the company had reportedly referred to the component as a "transceiver", making it subject to import duties.
As a result, India’s tax department has demanded 44.6 billion rupees ($763.5 million) in unpaid customs duties and additional penalties. Additionally, Samsung’s Indian subsidiary executives—seven in total—have been fined $81 million (approximately 118.8 billion KRW).
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
