New Delhi, March 25
After the Indian government asked Samsung to pay $601 million (approximately Rs 5,174 crore) in back taxes and penalties for allegedly evading import duties on some key telecom equipment, the South Korean giant on Tuesday said the company fully complies with the laws of the land and is currently "assessing legal options".
The tax demand amounts to a significant portion of Samsung’s net profit in India, which was $955 million last year.
Samsung’s network division, which imports telecom equipment, had allegedly been under scrutiny for "misclassifying critical transmission components used in mobile towers".
The company reportedly imported and sold these telecom components to Reliance Jio.
Reliance Jio, however, was yet to comment on reports.
In a statement, a Samsung India spokesperson said that "Samsung is a responsible corporation and fully complies with the laws in India".
"The issue involves the interpretation of classification of goods by Customs. We are assessing legal options to ensure that our rights are fully protected," the spokesperson added.