HP slapped with Rs1,450 crore custom duty evasion by DRI
06 May 2010
Already facing a corruption probe in three countries, Hewlett-Packard (HP), the world's No1 personal computer maker is now facing the heat from the Indian government for allegedly evading customs duty of nearly Rs1,450 crore ($322 million).
The directorate of revenue intelligence (DRI) has slapped a show-cause notice on the company's Indian subsidiary Hewlett Packard India Sales Pvt Ltd (HPISPL) for undervaluing computer products and spares that were imported from HP's overseas offices.
Hewlett Packard India said in a statement that all its dealings have been transparent and it has cooperated with the investigation, but will challenge the DRI's claims through judicial process.
After conducting an 18-month investigation, DRI alleged that HP evaded customs duty by undervaluing computer products like computers, laptops, notebooks and desktops imported by Hewlett Packard India from its parent company in the US and Singapore in the past five years.
According to the DRI, Hewlett Packard India has come forward and pre-deposited Rs79.25 crore with the government, although it did not say what the deposit was for.
Hewlett Packard India is one of the few companies under the 'accredited client programme' (ACP), a scheme that allows companies to clear imported goods faster in the green channel bypassing customs checks.
