Contract manufacturer Flex has moved the Supreme Court seeking to quash a Tax Tribunal ruling in Xiaomi’s royalty tax dispute. Xiaomi faces a 72 million dollar alleged unpaid tax demand, challenging it in a case crucial to India’s contract manufacturing framework.
The Delhi High Court reinstated Samsung India’s stay application concerning a Rs 1,213 crore tax demand, overruling the ITAT’s previous dismissal. The court’s decision allows ITAT to reconsider Samsung’s merits promptly. Samsung faces ongoing challenges, including a customs duty evasion notice and competition in the smartphone market.
