Samsung Electronics, one of the biggest tech and electronic companies in the world and the global market leader in the smartphone realm, has been slapped with a tax demand by the Indian government.
Samsung Penalised
The authorities have issued a penalty of USD 601 million or about Rs 5,100 crore, as per current exchange rates.
This demand has been issued on the count of eluding and, therefore, not paying tariffs on import. These include imports of crucial telecom components.
According to a Reuters report, this is one the biggest such tax demand raised by the Indian government on an external company.
This tax demand accounts for over 60 per cent of total profit accrued by the company in India last year.
In 2024, the Korean giant managed to make a net profit of USD 955 million in India.
Samsung's Market Share
Samsung has yet to make an official statement on the matter on the matter, and the future course of action is not known, as the company has the option of litigating the matter in the Indian courts and tribunals.
While Chinese phones dominate the Indian smartphone market, Samsung is a key player as well.
Market share | Counterpoint
As per the latest numbers, Apple leads the global pack with just under 25 per cent of market share, followed by Samsung with around 16 per cent of the global share.
Samsung Electronics Co Ltd Shares
When we look the performance of the company shares, listed on the Korean Exchange in Seoul, the equity is trading with strong gains.
After opening flat at KRW (South Korean Won) 59,800, the Samsung Electronics shares took the bullet train to major gains. The company shares zoomed in value as time progressed further.
At the time of writing, expansion in the value of Samsung shares stood at 2.17 per cent or KRW 1,300.00. This surge meant that the overall value of the company shares went to KRW 61,100 per share.
