China-based Huawei gets partial relief from ITAT

Regarding alleged tax cheating, India’s Income Tax Appellate Tribunal (ITAT) has granted partial relief to Chinese electronics giant Huawei Technologies. The IT division has charged Huawei India with minimizing its tax obligations by paying over 700 crores ($93 million) in dividends to its parent company in China. Huawei India is required to pay tax as its fixed location is a permanent establishment for rendering technical services to Indian businesses, according to the ITAT.

NewsOTG gathered that the IT department’s tax demand on royalty payments was denied by the tribunal, nevertheless. The IT department has been closely monitoring Huawei India for some time, thus this choice will have a big impact on the company. The decision may result in a reassessment of the company’s tax obligations and will have an influence on how it conducts business in the Indian market. The decision also draws attention to the ongoing hostilities between Indian authorities and Chinese IT firms. Because of worries about national security and claims of intellectual property theft, Huawei has drawn attention in India and other nations. Huawei has continued to operate in India and grow its company there despite these difficulties. The business has made significant investments in R&D and formed alliances with top Indian businesses.