Samsung India Faces Tax Demand Over Alleged Duty Evasion
Samsung India is currently considering legal avenues in response to a substantial tax demand issued by customs authorities. The amount in question exceeds ₹5,100 crore (approximately $601 million) and stems from allegations of duty evasion related to imported telecom equipment.
Background of the Case
A spokesperson for Samsung emphasized the company’s commitment to complying with Indian laws, stating, “Samsung is a responsible corporation and fully complies with the laws in India. The issue involves the interpretation of classification of goods by customs.” They further confirmed that the company is actively assessing its legal options to protect its rights.
This demand is not new; it follows an earlier show-cause notice sent to Samsung in January 2023, to which the company reportedly did not respond to the satisfaction of customs officials. An official disclosed that the first notice’s original assessment was for ₹1,200 crore, indicating that the subsequent notice was a follow-up due to insufficient replies.
Allegations by Customs Authorities
The allegations presented in the January 2023 notice claim that Samsung improperly classified imports of telecom tower equipment to evade tax duties. Samsung countered these claims, asserting that the equipment in question should not incur any duties.
Recent Developments
According to a REUTERS report dated March 25, 2025, India’s customs authority issued an order on January 8, 2025, stating that Samsung had indeed violated Indian laws. The order accuses the company of deliberately submitting false documentation to facilitate the clearance of goods through customs. In addition to the financial penalties imposed on the company, tax authorities have also levied fines totaling $81 million against seven executives at Samsung.
Next Steps for Samsung
As the situation develops, Samsung India is under pressure to clarify its position and navigate this challenging legal landscape. The outcome could have significant implications for the company’s operations in the region, especially within the highly regulated telecommunications equipment sector.
