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Indian income tax regulator break-in ZTE’s Indian locations and some key employee residences

India’s Income Tax Regulatory Authority, the Central board of direct  Tax Administration (CBDT), announced that it has searched five locations for suspected tax fraud and disputes, including the Indian offices and private residences of the foreign company ZTE. Indian IT raids ZTE’s India areas affecting includes corporate office, residences of foreign directors and CFO. It also includes corporate secretary, and chief financial officer of a Chinese company.

All locations are located in New Delhi and the study aims to determine the status of ZTE and hundreds of employees. The search could prove tax fraud and litigation. Among the allegations is that ZTE has not deducted the tax at source for quite a few years. The total capital drawn-in in tax fraud is not clear, but it is considered to be very high. The official CBDT statement did not mention ZTE’s name, but the company understands that the company deals with telecommunications equipment. It also deals with installation and storage equipment and has no doubts about the company.

The CBDT tax enforcement agency said it had gathered quantity of evidence that a comprehensive and well buttery programs were designed to prevent companies from paying legal taxes. The company also claimed that it did not reduce TDS’s costs on the basis of a review of its cost statements. The investigation may get back to 2014 and now reopened on 16th of August. Several senior company officials were interrogated in connection with raid, but none of them were arrested, in matter of Indian IT raid on ZTE’s India.

The investigation may relate to ZTE’s business relationship with India’s state-owned telecommunications operator BSNL, with some patterns observed. The findings may also relate to potential problems with monetary wrongdoing and the BSNL imposed by ZTE. The controllers utter that it has already received convict proof in the form of electronic data and paper credentials.

Allegedly, migrant workers from India smuggled medicines. ZTE has not yet responded to the allegations. By far we know that much on Indian IT raid on ZTE’s India, further details will be posted as it get reveled by media.

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