---
title: "Contract manufacturer Flex seeks to overturn Indian tribunal ruling in Xiaomi tax case, court filing shows"
description: "Contract manufacturer Flex is seeking to overturn an Indian Tax Tribunal ruling that ordered Xiaomi to pay $72 million in unpaid taxes on royalties. Flex argues that the tribunal's decision could lead"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/277044338.md"
published_at: "2026-02-26T12:55:54.000Z"
---

# Contract manufacturer Flex seeks to overturn Indian tribunal ruling in Xiaomi tax case, court filing shows

> Contract manufacturer Flex is seeking to overturn an Indian Tax Tribunal ruling that ordered Xiaomi to pay $72 million in unpaid taxes on royalties. Flex argues that the tribunal's decision could lead to severe penalties for them, claiming they did not assist Xiaomi in undervaluing imports. Xiaomi is also challenging the ruling, stating it undermines trust in the contract manufacturing sector in India. The Supreme Court has requested the Indian government to respond, with the next hearing scheduled for April.

Xiaomi’s royalty tax case in India seen setting precedent

Flex India unit says it risks facing harsh penalties

Xiaomi is separately challenging the royalty tariff ruling

By Arpan Chaturvedi

NEW DELHI, Feb 26 (Reuters) - Contract manufacturer Flex (FLEX.O) is asking India’s Supreme Court to overturn an Indian Tax Tribunal order relating to the tax authorities payment dispute with Chinese smartphone maker Xiaomi (1810.HK) , a court filing from Flex, seen by Reuters, showed.

Xiaomi has been asked to pay $72 million in unpaid taxes on royalties, but it has challenged this at the Supreme Court in a case seen as a test of the country’s legal framework for contract manufacturing.

Flex is asking the Supreme Court to strike down the Indian Tax Tribunal order, which said Xiaomi’s contract manufacturers “willingly participated in the layering of transactions facilitating the evasion of taxes,” Flex’s court filing showed.

U.S.-listed Flex (FLEX.O) told India’s Supreme Court it did not help Chinese smartphone maker Xiaomi to undervalue certain imports into India, the court filing showed.

Flex’s court filing said the Indian Tax Tribunal ruling could expose the contract manufacturer to “extremely harsh penalties.”

Flex in India and Xiaomi did not immediately respond to requests for comment. India’s customs authorities did not respond to requests for comment.

Flextronics Technologies India, a subsidiary of Flex, was not “involved in any manner in the transaction pertaining to royalty,” the company told the court in its January 16 filing, which is not public but has been reviewed by Reuters.

Xiaomi has said the implications of the tribunal’s ruling are far-reaching as they indicate “an implicit mistrust of the entire contract manufacturing industry” in the country.

In its Supreme Court challenge, Xiaomi argued that the tax tribunal erred by saying it was the “beneficial owner” of the components while requiring it to pay tax on the royalties.

The Supreme Court on Monday asked the Indian government to respond to the legal challenges and it will take up the case next in April.

### Related Stocks

- [XIACY.US - Xiaomi Corporation](https://longbridge.com/en/quote/XIACY.US.md)
- [FLEX.US - Flex](https://longbridge.com/en/quote/FLEX.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| Xiaomi bought back 2.8 mln type B shares for HK$100 mln on Feb 25, HKEX says | Xiaomi bought back 2.8 mln type B shares for HK$100 mln on Feb 25, HKEX says | [Link](https://longbridge.com/en/news/276886603.md) |
| Flex to Participate in Upcoming Investor Conference \| FLEX Stock News | Flex (NASDAQ: FLEX) will participate in the Raymond James 47th Annual Institutional Investors Conference on March 2, 202 | [Link](https://longbridge.com/en/news/276613474.md) |
| Bpcl gets tax demand order worth 18.17 billion rupees | Bpcl gets tax demand order worth 18.17 billion rupees | [Link](https://longbridge.com/en/news/276594373.md) |
| Supreme Court limits Trump tariff authority | The Supreme Court on Friday ruled that former President Donald Trump exceeded his authority when... | [Link](https://longbridge.com/en/news/276931076.md) |
| The Supreme Court’s tariff ruling will lead to more trade uncertainty | Companies will likely now scramble to recover what they paid, while the broader economic impact may be hard to gauge. | [Link](https://longbridge.com/en/news/276465205.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.