HIGHLIGHTS
- The telecoms company was not named by the Ministry of Finance.
- Raids were carried out at Huawei's offices in Delhi, Gurugram, and Bengaluru.
- The government has barred Huawei from participating in 5G service testing.
An Indian government source told Reuters on Thursday that a tax inquiry into China's Huawei discovered that the telecommunications equipment company altered account books to decrease its taxable income in the nation.
Without identifying the business, India's Ministry of Finance stated that during income tax raids on its offices in three Indian cities last month, a major telecoms corporation "failed to offer any meaningful and adequate reason" on tax demands.
A spokeswoman for Huawei in India did not immediately reply to a request for comment.
According to government sources, the IT department conducted searches at numerous locations in the nation of Chinese telecom corporation Huawei in February as part of a tax fraud probe.
The raids were place at the company's headquarters in Delhi, Gurugram, and Bengaluru. According to sources, the inspectors examined financial papers, account books, and corporate records as part of a tax evasion probe involving the firm, its Indian subsidiaries, and offshore transactions. They also claimed that certain records had been confiscated.
According to the corporation, its operations in the nation are "fully compatible" with the law.
"We were told of the Income Tax team's visit to our office, as well as their interaction with several workers. Huawei is convinced that its activities in India are fully compliant with all applicable laws and regulations. We will contact relevant government offices for further information and will fully comply in accordance with the rules and regulations, as well as the correct procedure "In a statement, the firm stated. The government has barred Huawei from participating in 5G service testing.
However, telecom operators have been allowed to source telecom gear from Huawei and ZTE under their old agreements for network maintenance, but they will need government approval before entering into any new business agreements, according to the National Security Directive on Telecommunication Sector.
