India slaps Samsung with tax demand of $601 million for telecom imports

India has ordered Samsung and its executives in the country to pay $601 million in back taxes and penalties for dodging tariffs on import of key telecoms equipment, a government order showed, for one of the biggest such demands in recent years.

The demand represents a substantial chunk of last year’s net profit of $955 million for Samsung in India, where it is one of the largest players in the consumer electronics and smartphone market. It can be challenged in a tax tribunal or the courts.

The company, which also imports telecoms equipment through its…