Xiaomi Ordered to Pay India $87.8 Million of Import Taxes

Xiaomi Corp. objected to a demand by the Indian government that the company’s local unit pay 6.53 billion rupees ($87.8 million) of import taxes the Chinese smartphone giant allegedly evaded over more than three years.

Xiaomi imported cellphones and parts without including in the transaction value the royalties and license fees paid by Xiaomi India to Qualcomm USA and to Beijing Xiaomi Mobile Software Co. Ltd., India’s Finance Ministry said Jan. 5 in a statement. The India Finance Ministry issued notices to Xiaomi demanding payment of 6.53 billion rupees for the period between April 2017 and June 2020.