IT Department Searches Offices of Chinese Telecom Major Huawei in Three Cities

IT Department Searches Offices of Chinese Telecom Major Huawei in Three Cities According to official sources, the Income-tax Department has undertaken searches at numerous locations in the country of Chinese telecom corporation Huawei as part of a tax evasion probe. On Tuesday, the raids began at the company's headquarters in Delhi, Gurugram (Haryana), and Bengaluru (Karnataka). The raids began early in the morning and lasted all day. Tax officials also questioned Huawei India's senior management and examined documents pertaining to the company's financial dealings. It is unclear whether Huawei India MD David Li was also questioned, while the company's Chinese headquarters is apparently keeping a careful eye on the proceedings. They also claimed that some records had been confiscated. "We were told of the Income Tax team's visit to our office, as well as their interaction with some employees. Huawei is confident that its operations in India comply with all applicable laws and regulations. We will approach related government departments for more information and completely cooperate,” the business added. Telecom operators have been authorised to purchase telecom gear from Huawei and ZTE under their old agreements for network maintenance, but they will need government clearance before entering any new business arrangements, according to the National Security Directive on Telecommunication Sector. Last year, the tax department conducted searches of Chinese mobile communication and handset manufacturing companies Xiaomi and Oppo, as well as their related entities, claiming to have discovered alleged unaccounted income worth over Rs.6,500 crore as a result of violations of Indian tax laws and regulations. The action against Huawei, which is now practically out of the running for delivering 5G telecom equipment, comes despite the government's hardline stance against Chinese corporations as bilateral relations remain tense owing to border concerns. The Information and Technology Ministry prohibited 54 more Chinese-linked apps earlier this week, claiming security and privacy concerns, including Tencent Xriver, Nice Video Baidu, Viva Video Editor, and gaming app Garena Free Fire Illuminate. In India, the Enforcement Directorate (ED) has searched and frozen the assets of Chinese-controlled enterprises and non-banking financial organisations (NBFCs) that provide rapid loans using smartphone apps. The increased action against Chinese-backed enterprises and organisations operating in India comes amid a military standoff in eastern Ladakh.