Govt singles out VW in $1.4 bn tax issue, says Kia complied

Indian tax authorities have singled out Volkswagen as the only automaker to wrongly classify its car imports for 12 years to evade $1.4 billion in taxes, even as rival Kia changed its practice after being pulled up, court papers show.

- Reuters

NEW DELHI:

Volkswagen is a tiny player in India's car market, which is the third biggest in the world, and its Audi brand lags luxury peers such as Mercedes and BMW. If found guilty it could face dues of $2.8 billion, including penalty and delayed interest.

The court fight over the record tax demand is a matter of "life and death", Volkswagen's Indian unit says. The highest import tax demand in India's history has also rekindled investor worries that lengthy disputes could stymie their plans.