Samsung Challenges $520 Million Tax Demand in India, Cites Reliance Jio's Import Practices
Published on May 4, 2025
Samsung has launched a legal challenge against a $520 million tax demand from Indian authorities, arguing that its import classification practices mirror those previously used by Reliance Jio. The South Korean tech giant has filed a 281-page appeal with the Customs Excise and Service Tax Appellate Tribunal in Mumbai, seeking to overturn the tax order issued in January 2025.
The Dispute Over Import Classification
The controversy revolves around Remote Radio Head components—critical networking equipment used in 4G telecom systems. Indian tax officials allege that Samsung misclassified imports worth $784 million from Korea and Vietnam between 2018 and 2021, allowing the company to evade 10-20% tariffs.
Samsung argues that Indian authorities were fully aware of the classification method, as Reliance Jio had used the same approach between 2014 and 2017 without facing penalties.
Legal Battle and Financial Stakes
In addition to the $520 million tax demand, Indian authorities have imposed an $81 million fine on seven Samsung employees, bringing the total liability to $601 million.
Implications for Foreign Companies in India
Samsung’s legal battle comes amid growing tensions between foreign corporations and Indian tax authorities. Recently, Volkswagen also challenged a record $1.4 billion tax demand over similar accusations of component misclassification.
Samsung, Reliance Jio, and India’s tax department have declined to comment on the ongoing dispute.
Source: MSN,
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