India has ordered Samsung and seven of its top executives in the country to pay $601 million in back taxes and fines for evading import duties on critical telecom equipment.. The order shows that seven Indian executives face fines of US$81 million, including Sung Beam Hong, vice president of the network department, Dong Won Chu, chief financial officer, Sheetal Jain, general manager of finance, and Nikhil Aggarwal, general manager of indirect tax at Samsung.

It is reported that,Samsung's net profit in India last year was US$955 million. A simple calculation shows that the taxes and penalties it needs to pay account for as high as 63%. It has also become one of the largest compensation claims issued by the Indian government in recent years.

Samsung responded in a statement saying it was "evaluating legal options to ensure our rights are fully protected."

Samsung, one of the largest players in India's consumer electronics and smartphone markets, also imports telecom equipment through its network unit,

I received a warning in 2023,The reason was "misclassification of imported goods to avoid 10% or 20% tariffs on a critical transmission component used in mobile communication towers."

Samsung had asked India's tax authorities to drop its review of the matter, saying the component should not be subject to tariffs and that officials had known about its classification practices for years.

However, on January 8, 2024, a confidential order issued by the Indian Customs Department rejected the request.

Customs Commissioner Sonal Bajaj said in the order that Samsung "violated Indian laws" and "knowingly and knowingly submitted false documents to customs authorities for clearance,"It was therefore ordered to pay 44.6 billion Indian rupees (approximately $520 million), including unpaid taxes and 100% penalty.