(Yicai Global) Feb. 17 -- China's Huawei Technologies has insisted that its operations in India strictly comply with the South Asian country’s laws and regulations after local tax authorities made a surprise visit to the phonemaker's offices.

Huawei will fully cooperate with Indian tax officials in accordance with the relevant rules, regulations, and procedures, the Shenzhen-based telecoms firm said to Yicai Global today.

Indian tax authorities conducted raids that targeted several premises of Huawei in New Delhi, Gurugram, and Bangalore on Feb. 15, according to local media reports.

Chinese manufacturers are becoming an important participant in the Indian market but not always without issues. India often raises taxes unexpectedly, followed by tax inspections, industry insiders said to Yicai Global.

The Indian government hiked the basic tariff on smartphones to 20 percent from 15 percent in February 2018. The previous increase had taken place in December 2017. In April 2018, the country levied a 10 percent tariff on electronic components, including circuit boards and camera modules.

Several Chinese companies’ operations have been affected by recent raids, according to industry insiders.

Chinese handset brands Xiaomi, Oppo, and OnePlus were inspected for tax issues in India last year. Last month, the Indian finance ministry issued a statement, requiring Xiaomi’s local unit to pay INR6.53 billion (USD87 million) in taxes.

Companies have trouble determining the prices of imported products, Beijing-based Xiaomi said earlier. Different counties have different guidelines about whether royalties including patent fees should be included in the prices, it added.

The recent probes have caused concerns among many foreign electronics manufacturers in India. Chinese manufacturers and other foreign companies are treated differently in the inspections, Yang Shucheng, secretary-general of the India China-Mobile-Phone Enterprise Association, said to Yicai Global.

Editor: Emmi Laine, Xiao Yi