India freezes bank accounts of China's ByteDance in tax case, company mounts challenge-sources
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Wednesday
February 08, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
WEDNESDAY, FEBRUARY 08, 2023
India freezes bank accounts of China's ByteDance in tax case, company mounts challenge-sources

South Asia

Reuters
30 March, 2021, 07:55 pm
Last modified: 30 March, 2021, 07:58 pm

Related News

  • India plans to promote green tourism during G20 presidency
  • Indian police arrest 28 Bangladeshis at Agra slum
  • Oil’s New Map: How India turns Russia crude into the west's fuel
  • Indian watchdog tells investors markets stable despite Adani rout
  • US FDA says India-made eye drop linked to some infections, blindness and one death

India freezes bank accounts of China's ByteDance in tax case, company mounts challenge-sources

ByteDance still has around 1,300 employees in India, most of whom service its overseas operations, including work on activities such as content moderation

Reuters
30 March, 2021, 07:55 pm
Last modified: 30 March, 2021, 07:58 pm
Photo: Reuters
Photo: Reuters

Indian authorities have blocked bank accounts of ByteDance in the country for alleged tax evasion and the company has asked a court to quash the directive which it fears will hit its operations hard, two sources with direct knowledge told Reuters.

ByteDance in January cut its India workforce after New Delhi decided to retain a ban on its popular video app TikTok, first prohibited last year following a border clash between India and China. China has repeatedly criticized India's move and said it suspected it was against WTO rules.

ByteDance still has around 1,300 employees in India, most of whom service its overseas operations, including work on activities such as content moderation.

In mid-March, two of ByteDance India's bank accounts in Citibank and HSBC were ordered blocked by authorities for alleged evasion of certain taxes in online advertising dealings between the ByteDance unit in India and its parent entity in Singapore, TikTok Pte Ltd, the two sources said.

Other than the two accounts, the authorities also directed Citibank and HSBC to not allow ByteDance India to withdraw funds from any other bank accounts linked to its tax identification number, the first source said.

In a court filing which is due to be heard soon at a High Court in the financial capital Mumbai - ByteDance India has argued that while it had only about $10 million in its accounts, the blocking decision was an abuse of the legal process and will make it hard for it to pay salaries and taxes, the source added.

Both the sources declined to be identified as the details of the bank freeze or company's court challenge were not public.

ByteDance India, as well as HSBC, Citibank and India's finance ministry, did not immediately respond to a request for comment.

The TikTok app ban - part of dozens of other Chinese apps which were banned last year - in what India said was in interests of national security and sovereignty. The move was widely seen as India's broader pushback against Chinese businesses after clashes at a disputed Himalayan border site left 20 Indian soldiers dead.

The directive to freeze ByteDance India's bank accounts came after tax authorities last year inspected documents at the company's office, scrutinized documents and questioned some executives in relation to the advertising and other transactions with its parent entity, the first source said.

In its court document, which the source was privy to, ByteDance India has argued that its entire business had come to a standstill because of the bank freeze and that such an action violates its rights "to carry free trade and business".

"The company was already struggling with the India ban. This can hit employee salaries, vendor payments," the second source said.

TikTok had come under scrutiny around the world. During former US president Donald Trump's administration, which alleged that the app posed national security concerns as personal data of US users could be obtained by China's government, an allegation the company denied.

US President Joe Biden's new administration has paused a government lawsuit that could have resulted in a de facto ban on TikTok's use in the United States. 

Top News / World+Biz

ByteDance / India

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • RMG turns to India from China to get cheaper man-made yarn
    RMG turns to India from China to get cheaper man-made yarn
  • Country's revenue earnings were Tk40,000cr more in last fiscal: Finance Minister
    Country's revenue earnings were Tk40,000cr more in last fiscal: Finance Minister
  • The world's richest person is trying to head off a succession battle
    The world's richest person is trying to head off a succession battle

MOST VIEWED

  • Photo: Collected
    India plans to promote green tourism during G20 presidency
  • Photo: Collected
    G20 members agree on joint efforts to achieve energy efficiency and security
  • A policeman walks past the Supreme Court building in Islamabad, Pakistan October 31, 2018. REUTERS/Faisal Mahmood/File Photo
    Pakistan supreme court orders taxpayers to deposit 50pc super tax in seven days
  • Pakistan PM orders Wikipedia website unblocked
    Pakistan PM orders Wikipedia website unblocked
  • A wooden case holding US dollars bills on display at the Sara-e Shahzada exchange market in Kabul in October 2022.Source: Bloomberg
    Dollars smuggled from Pakistan provide lifeline for the Taliban
  • People wait their turn to get fuel at a petrol station, in Karachi, Pakistan June 2, 2022. Picture taken June 2, 2022. REUTERS/Akhtar Soomro/File Photo
    Pakistan, IMF grapple for consensus to unlock critical funding

Related News

  • India plans to promote green tourism during G20 presidency
  • Indian police arrest 28 Bangladeshis at Agra slum
  • Oil’s New Map: How India turns Russia crude into the west's fuel
  • Indian watchdog tells investors markets stable despite Adani rout
  • US FDA says India-made eye drop linked to some infections, blindness and one death

Features

Photo: Reuters

A tragedy that will also shake up the region's geopolitics

7h | Panorama
Nimah designed by Compass Architects- Wooden tiles. Photo: Junaid Hasan Pranto

Trendy flooring designs to upgrade any space

17h | Habitat
Benefits of having high ceilings in your new home

Benefits of having high ceilings in your new home

17h | Habitat
Each Reverse Osmosi plant can produce approximately 8,000 litres of drinking water a day for around 250 families. Photo: Sadiqur Rahman

A drop in the ocean of persistent water crisis

18h | Panorama

More Videos from TBS

30% companies see double-digit growth even in hard times

30% companies see double-digit growth even in hard times

9h | TBS Insight
Challenging time waiting for RMG

Challenging time waiting for RMG

16h | TBS Round Table
"Full Moon Meditation" organized by Department of Theater and Performance Studies, University of Dhaka

"Full Moon Meditation" organized by Department of Theater and Performance Studies, University of Dhaka

16h | TBS Graduates
10 cricketers who have played over 400 T20 matches

10 cricketers who have played over 400 T20 matches

16h | TBS SPORTS

Most Read

1
Photo: Courtesy
Panorama

From 'Made in Bangladesh' to 'Designed in Bangladesh'

2
Leepu realised his love for cars from a young age and for the last 40 years, he has transformed, designed and customised hundreds of cars. Photo: Collected
Panorama

'I am not crazy about cars anymore': Nizamuddin Awlia Leepu

3
Master plan for futuristic Chattogram city in the making
Districts

Master plan for futuristic Chattogram city in the making

4
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo
Economy

IMF approves $4.7 billion loan for Bangladesh, calls for ambitious reforms

5
Belal Ahmed new acting chairman of SIBL
Banking

Belal Ahmed new acting chairman of SIBL

6
Photo: Collected
Crime

Prime Distribution MD Mamun arrested in fraud case

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]