Chinese smartphone giant Xiaomi has been told to pay outstanding import taxes by the Indian government, in the latest clash between the tech company and the South Asian nation, reports the South China Morning Post. Xiaomi confirmed on Thursday that its local unit has been asked by India’s finance ministry to pay 6.53 billion rupees ($87.8 million) in import taxes. The company, however, insisted that it operates legally worldwide.
In a statement, Xiaomi said it has yet to agree with Indian authorities on the past-due amount, and communications are still ongoing. It added that the issue was caused by “different opinions on the price determination of imported goods,” such as whether patent license fees and other royalties should be included in the price of imported products.
According to an investigation by India’s Directorate of Revenue Intelligence, Xiaomi India paid royalties and license fees to Qualcomm USA and Beijing Xiaomi Mobile Software Co Ltd, but did not add them to the total transaction value of its imports.