Xiaomi has challenged an Indian tax ruling that said the company evaded $72 million in tariffs on royalty payments, according to legal documents, a dispute that the Chinese company and lawyers say is a test of the country’s legal framework for contract manufacturing.
Xiaomi, a major player in the Indian smartphone market, has for years had its contract manufacturers in the country import parts from China, pay customs duties and then assemble the devices.
But in November, an Indian tax tribunal ruled those import values had been undervalued for at…
