Even the biggest of biggest enterprises do not get past the eyes of the tax collection agencies in India. This time it is computer manufacturing giant – Hewlett Packard (HP India). The government has slapped a tax notice of Rs 1,450 crore on HP India Sales Pvt. Ltd. for allegedly evading Customs duty. However this charge was refuted by the company.
The charges that have been reported are undervaluation of components and spare parts imported from countries like Singapore and the US and thus evading Customs duty. This tax demand one of the biggest in recent times and could be a major cause of concern among IT companies in India.
However, HP India has been transparent and has cooperated fully with the DRI in its investigation and they plainly refute the DRI’s position and are ready to challenge its claims through the judiciary. HP India has also voluntarily paid Rs 79 crore after the investigation