NEW DELHI: Indian tax authorities have ordered Samsung and its executives to pay $601 million in back taxes and penalties, accusing the company of dodging tariffs on key telecom equipment imports, Reuters reported.
This massive demand—one of the largest ever imposed on an electronics giant—will cut deeply into Samsung’s net profit in India, which stood at $955 million last year.
The South Korean tech major, which supplies telecom gear through its network division, had been under scrutiny since 2023 for allegedly misclassifying telecom imports to avoid paying 10%–20% tariffs on critical mobile tower transmission components.
According to Outlook Business, Samsung avoided duties on $784 million worth of imports between 2018 and 2021. The company’s offices in Mumbai and Gurugram were even searched in 2021 as part of the investigation.
These disputed telecom components were reportedly imported and sold to Reliance Jio, owned by billionaire Mukesh Ambani.
Samsung has contested the claims, arguing that the component in question was not subject to tariffs and that customs officials were aware of its classification practices for years. However, the Indian tax authority disagreed.
According to the official order, Sonal Bajaj, Commissioner of Customs, stated that Samsung knowingly violated Indian laws and presented false documents to customs officials to clear the imports.
With this hefty tax bill, Samsung now faces a legal battle that could impact its telecom operations and future investments in India’s fast-growing 5G sector.
