HP slapped with Rs1,450 crore custom duty evasion by DRI

06 May 2010

1

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.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more