Volkswagen complains India for billions of tax claims

The Volkswagen,According to court documents, group has brought a lawsuit against the Indian state due to a billion -dollar tax claim. The claim of $ 1.4 billion (EUR 1.35 billion) is impossible, contradictory in contradiction to the Indian regulations for the taxation of imports and endangers the business plans of the company, according to the documents submitted by the court On the lawsuit from January 29th.

The documents are not public, but were able to Reuters be viewed. The tax dispute at risk the group’s investments in India in the amount of $ 1.5 billion and Schade the climate for foreign investments, explained Skoda Auto Volkswagen India In the High Court documents submitted in Mumbai.

The leadership for the business in the Asian country lies with the subsidiary Skoda. The court wants to start the hearings on February 5.

Volkswagen India threatens payments of $ 2.8 billion

In the largest import tax claim to date, India issued a tax assessment of $ 1.4 billion against Volkswagen in September. Since 2012, the company had paid too little in the number of import duties since 2012, it said in a document by the Indian customs authorities.

According to a government representative, Volkswagen India could face a payment of $ 2.8 billion if the company loses the legal dispute, including fines. In the 2023/24 financial year, VW India recorded sales of $ 2.19 billion and a net profit of eleven million dollars.

No statement was initially available from the Indian Ministry of Finance and the customs authorities. The Indian branch of Volkswagen declared to exploit all legal means, to work with the authorities and continue to commit to comply with all global and local laws.