Labor Ministry threatens Huawei Technologies

By SiliconIndia   |   Wednesday, 27 August 2008, 03:47 Hrs
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New Delhi: The Labor Ministry of India has threatened the closure of Huawei Technologies' business in India. The ministry has accused the Chinese telecom company Huawei for not following Indian laws to undertake operation in the country.

The company has been employing a large number of Chinese workers in India without proper visa and also not paying applicable income tax.

"Huawei is not paying applicable income tax for which they do not have immunity. This is in complete disregard to the law of the land and misuse of liberty leading to indulgence in fraudulent act," the notice said.

In the event of non-compliance and continued abuse of government regulations, the directors of the company, including the CEO, would be reprimanded by financial penalties or imprisonment and the government may ask the firm to close its business premises.

However, a company spokesperson said, "The company strictly complies with Indian tax regulations and mandates since inception. We have been paying our statutory liabilities in terms of personal income tax and corporate income tax regularly."

The centre made it clear that action would be taken against the company as its Chinese employees in India who hold business visa, are living in apartments illegally without having any resident visa and has asked the company to immediately repatriate all illegal Chinese workers from the country.

The spokesman said, "Our Chinese staffs who hold business visa routinely go back to headquarters once their training and customer care assignments are over and also go back for renewing their business visas."
Huawei started its operation in India in 1998 by establishing its first Research and Development centre followed by its marketing and sales office in 2002. The company also claimed that it employs approximately 1,100 employees and more than 99 per cent of these are Indian engineers and marketing professionals.

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