No halt on Skoda Volkswagen shipment over $1.4 billion tax demand, say Customs
1 month, 1 week ago

No halt on Skoda Volkswagen shipment over $1.4 billion tax demand, say Customs

India Today  

The Bombay High Court heard a petition from Skoda Volkswagen India on Monday, challenging a USD 1.4 billion tax demand issued by Indian customs authorities. The case revolves around a dispute regarding the classification of imported vehicle parts, with the company arguing that it has been unfairly charged higher taxes over the past 12 years. The issue centres on the classification of car parts imported by Skoda Volkswagen, which the tax authorities have categorised as "completely knocked down" units, subject to a higher duty rate of 30 per cent. Skoda Volkswagen's legal team argued that the concept of CKD parts was introduced only in 2002 and lacked clarity until 2011, when the company received a favourable clarification from tax authorities regarding the classification of these parts.

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History of this topic

Volkswagen tax case: Why government stands firm on $1.4 billion demand
Trending News
3 days, 23 hours ago

Volkswagen tax case: Why government stands firm on $1.4 billion demand

India Today  

The government has refused to cancel a massive $1.4 billion tax bill against carmaker Volkswagen, telling the Bombay High Court that doing so would have "catastrophic consequences" and might encourage other companies to hide information and slow down tax inquiries, reported news agency Reuters. The tax demand is against Skoda Auto Volkswagen India, which is accused of wrongly classifying imported …

Bombay High Court seeks formal reply from Customs Dept in Skoda Volkswagen case
1 month ago

Bombay High Court seeks formal reply from Customs Dept in Skoda Volkswagen case

India Today  

The Bombay High Court has directed the Customs Department to file a formal response to Å koda Volkswagen’s petition challenging a $1.4 billion tax show-cause notice issued by Indian customs authorities. However, on Wednesday, the bench sought clarity from the Customs Department regarding its claim that it had been requesting tax assessment documents from the company for several years. In …

File affidavit on time limitation: HC to Customs in Volkswagen tax case
1 month ago

File affidavit on time limitation: HC to Customs in Volkswagen tax case

The Hindu  

After an extensive hearing of arguments for days in the $1.4 billion tax dispute case of Skoda Auto Volkswagen India with the Indian Customs, the Bombay High Court on Wednesday directed the Customs department to file an affidavit explaining how its September 2024 show-cause notice to the German auto giant is not barred by limitation. Though we have heard extensively …

Volkswagen used ‘secret scheme’ to pay lower taxes: Govt tells Bombay HC
1 month ago

Volkswagen used ‘secret scheme’ to pay lower taxes: Govt tells Bombay HC

Hindustan Times  

Tax authorities in India have singled out Volkswagen as the only automaker which wrongly classified car imports for 12 years to evade tax worth $1.4 billion, Reuters reported citing court documents. The authorities were speaking during a case filed by Volkswagen at the Bombay high court against the tax demand of the government of India. “Earlier, they were clearing such …

Volkswagen tax dispute: India singles out VW in $1.4 billion tax dispute, says Kia corrected course
1 month ago

Volkswagen tax dispute: India singles out VW in $1.4 billion tax dispute, says Kia corrected course

The Hindu  

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. The court fight over the record tax demand is a matter of "life and death", Volkswagen's Indian unit says. Rebutting …

Skoda-Volkswagen Case : Bombay High Court Asks Customs Dept To Explain How Show Cause Notice Isn't Time-Barred
1 month ago

Skoda-Volkswagen Case : Bombay High Court Asks Customs Dept To Explain How Show Cause Notice Isn't Time-Barred

Live Law  

In Skoda Auto Volkswagen India's petition challenging a tax demand of USD 1.4 billion by Indian Customs authorities, the Bombay High Court today asked the Customs Authority to file an affidavit explaining why the September 2024 show-cause notice issued to the company is not barred by limitation. The Court asked the Additional Solicitor General N Venkatraman, representing the Customs department, …

Volkswagen only carmaker to wrongly classify car imports: Tax authorities
1 month ago

Volkswagen only carmaker to wrongly classify car imports: Tax authorities

India Today  

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. The court fight over the record tax demand is a matter of "life and death", Volkswagen's Indian unit says. Rebutting …

Customs notice to Volkswagen: Court 'dissatisfied' with carmaker's plea at first view
1 month ago

Customs notice to Volkswagen: Court 'dissatisfied' with carmaker's plea at first view

India Today  

The Bombay High Court on Monday expressed reservations over considering Skoda Auto Volkswagen India’s arguments in a plea against a USD 1.4 billion tax demand notice issued by the Customs Department. The court wondered whether the petition should be entertained at the stage of show cause notice, observing, "This is troubling us. The Additional Solicitor General N Venkatrama, the Customs …

Volvo, Mercedes, BMW paid too: Govt defends $1.4bn tax demand on VW
1 month, 1 week ago

Volvo, Mercedes, BMW paid too: Govt defends $1.4bn tax demand on VW

Live Mint  

Indian tax authorities have defended the $1.4-billion tax demand on Skoda Auto Volkswagen India Pvt. Volvo paid ₹2,395 crore, Mercedes ₹2,213 crore, Maruti Suzuki ₹11,163 crore, BMW ₹532 crore, and Kia paid ₹263 crore in duties on completely knocked down imports for their manufacturing processes, additional solicitor general N. Venkatraman, representing customs authorities, said in a response in the Bombay …

‘Skoda Volkswagen will have to fall in line and not play victim’: Customs dept to Bombay High Court
1 month, 1 week ago

‘Skoda Volkswagen will have to fall in line and not play victim’: Customs dept to Bombay High Court

Hindustan Times  

The Customs Department told the Bombay High Court that Skoda Volkswagen will have to fall in line and not play the “victim”. The Customs Department, while justifying its $1.4-billion tax demand notice to Skoda Volkswagen, said the company will have to stop playing the "victim". The court was hearing a plea filed by the automobile manufacturer challenging the tax demand …

Skoda Volkswagen can’t play victim, will have to fall in line on tax demand: Customs to Bombay HC
1 month, 1 week ago

Skoda Volkswagen can’t play victim, will have to fall in line on tax demand: Customs to Bombay HC

The Hindu  

Skoda Auto Volkswagen India will have to “fall in line and not play victim,” the Customs department told the Bombay High Court on Thursday, justifying its tax demand notice of $1.4 billion to the company for allegedly providing misleading information about its imports. A division bench of Justices B. P. Colabawalla and Firdosh Pooniwalla was hearing a petition filed by …

Skoda Volkswagen 'can't play victim card' over tax notice, Customs tells court
1 month, 1 week ago

Skoda Volkswagen 'can't play victim card' over tax notice, Customs tells court

India Today  

The Customs Department on Thursday told the Bombay High Court that Skoda Volkswagen India cannot "play the victim card" to evade its tax liabilities. The tax notice, issued on September 30, 2024, challenged Skoda Volkswagen's classification of imported parts and components, which the government asserts should be treated as CKD kits, subject to higher customs duties. It also proposes imposing …

Dispute Over Demand Of $1.4 Billion Import Duty From Volkswagen Will Not Affect Its Production In India: Customs Dept Tells Bombay HC
1 month, 1 week ago

Dispute Over Demand Of $1.4 Billion Import Duty From Volkswagen Will Not Affect Its Production In India: Customs Dept Tells Bombay HC

Live Law  

The dispute with regard to the demand for USD 1.4 billion import duty from Skoda Auto Volkswagen India has not and will not affect the German company's production in the country, the Customs Department told the Bombay High Court on Monday.A division bench of Justices Burgess Colabawalla and Firdosh Pooniwalla recorded the statement made by Additional Solicitor General N Venkatraman, …

Skoda consignments won't be stopped over $1.4 bn tax dispute: Govt to Bombay HC
1 month, 1 week ago

Skoda consignments won't be stopped over $1.4 bn tax dispute: Govt to Bombay HC

Live Mint  

The Union government told the Bombay High Court on Monday that no consignment belonging to Skoda Auto Volkswagen India Pvt. The dispute centred around whether these imports should be classified as CKD kits, which attract higher duties, or as standalone parts and components, which face a lower customs duty. Skoda’s petition says the taxman incorrectly interpreted the software as a …

How a Volkswagen software became the centre of a $1.4 billion tax dispute in India
1 month, 2 weeks ago

How a Volkswagen software became the centre of a $1.4 billion tax dispute in India

Live Mint  

Mumbai: At the heart of a $1.4 billion tax dispute between Volkswagen Group and the Indian government lies a piece of enterprise software, which the German group uses to source car parts from the across the world. The tax notice to SAVWIPL on 30 September 2024 challenges SAVWIPL's classification of parts and components imported for its Aurangabad factory. SAVWIPL’s defence …

Bombay High Court Agrees To Hear Volkswagen India's Challenge To 1.4 Billion USD Tax Demand By Customs Authorities
Trending News
1 month, 3 weeks ago

Bombay High Court Agrees To Hear Volkswagen India's Challenge To 1.4 Billion USD Tax Demand By Customs Authorities

Live Law  

The Bombay High Court on Wednesday agreed to hear on February 17, the petition filed by Skoda Auto Volkswagen India challenging the tax demand of USD 1.4 billion by Indian customs authorities. The customs authorities in India have accused Skoda Auto Volkswagen India, of misleading them through its mode of import of parts as "individual units" rather than as a …

Bombay HC to hear Skoda Volkswagen’s plea against USD 1.4 bn tax notice on Feb 17
1 month, 3 weeks ago

Bombay HC to hear Skoda Volkswagen’s plea against USD 1.4 bn tax notice on Feb 17

Live Mint  

Mumbai, Feb 5 The Bombay High Court on Wednesday said it would hear on February 17 a plea filed by Skoda Auto Volkswagen India challenging the tax demand of USD 1.4 billion by Indian customs authorities. The Volkswagen group, currently led in the country by Skoda Auto Volkswagen India, has been accused of deliberately misleading customs authorities through its mode …

Volkswagen sues India to quash enormous $1.4 billion tax demand, legal filing shows
Trending News
1 month, 3 weeks ago

Volkswagen sues India to quash enormous $1.4 billion tax demand, legal filing shows

Deccan Chronicle  

High taxes and prolonged legal disputes have often been a sore point for foreign companies in India, with Tesla also publicly complaining about high taxes on imported EVs. Volkswagen has sued Indian authorities to quash an "impossibly enormous" tax demand of $1.4 billion, arguing the ask is contradictory to New Delhi's import taxation rules for car parts and will hamper …

Volkswagen sues Indian tax authorities over $1.4 billion demand: What's the case about?
1 month, 3 weeks ago

Volkswagen sues Indian tax authorities over $1.4 billion demand: What's the case about?

Hindustan Times  

German car maker Volkswagen has moved the Bombay high court against Indian tax authorities seeking dismissal of "impossibly enormous" tax demand of $1.4 billion. In September last year, the Indian government slapped a $1.4 billion tax notice on Volkswagen for using a strategy to break down imports of some VW, Skoda and Audi cars into many individual parts to pay …

Volkswagen sues Indian authorities over $1.4 billion tax notice: Report
1 month, 3 weeks ago

Volkswagen sues Indian authorities over $1.4 billion tax notice: Report

India Today  

German carmaker Volkswagen has filed a lawsuit against Indian authorities, seeking to cancel a $1.4 billion tax demand, calling it "impossibly enormous" and contradictory to India’s import tax rules, reported news agency Reuters. The tax dispute began in September 2024, when Indian authorities issued a $1.4 billion tax notice to Volkswagen’s Skoda Auto Volkswagen India unit. Authorities claim Volkswagen imported …

Volkswagen sues Indian govt over $1.4 billion tax demand | Details
1 month, 3 weeks ago

Volkswagen sues Indian govt over $1.4 billion tax demand | Details

Hindustan Times  

Volkswagen has sued Indian authorities to quash what it calls, an "impossibly enormous" tax demand of $1.4 billion, news agency Reuters reported. The German automaker's Indian unit, Skoda Auto Volkswagen India, said the tax demand is contradictory to India's import tax rules for car parts and thus will put to risk its investment of $1.5 billion in the country, the …

Volkswagen sues India to quash 'enormous' $1.4 billion tax demand, legal filing shows
1 month, 3 weeks ago

Volkswagen sues India to quash 'enormous' $1.4 billion tax demand, legal filing shows

The Hindu  

Volkswagen has sued Indian authorities to quash an "impossibly enormous" tax demand of $1.4 billion, arguing the ask is contradictory to New Delhi's import taxation rules for car parts and will hamper the company's business plans, court papers show. In the biggest ever import tax demand, India in September slapped a $1.4 billion tax notice on Volkswagen for using a …

Volkswagen India unit faces USD 1.4 billion tax evasion notice
3 months, 3 weeks ago

Volkswagen India unit faces USD 1.4 billion tax evasion notice

India Today  

India has issued a notice to German automaker Volkswagen for allegedly evading USD 1.4 billion in taxes by "wilfully" paying lesser import tax on components for its Audi, VW and Skoda cars, a document shows, in what is one of the biggest such demands. A notice dated September 30 says Volkswagen used to import "almost the entire" car in unassembled …

Volkswagen India unit faces $1.4 billion tax evasion notice for Audi, VW and Skoda car parts: Report
3 months, 3 weeks ago

Volkswagen India unit faces $1.4 billion tax evasion notice for Audi, VW and Skoda car parts: Report

Live Mint  

India has issued a notice to German automaker Volkswagen for allegedly evading $1.4 billion in taxes by "wilfully" paying lesser import tax on components for its Audi, VW and Skoda cars, a document shows, in what is one of the biggest such demands. A notice dated Sept. 30 says Volkswagen used to import "almost the entire" car in unassembled condition—which …

Skoda commences exports of this Made-in-India SUV
2 years, 5 months ago

Skoda commences exports of this Made-in-India SUV

Hindustan Times  

Skoda Auto Volkswagen India Pvt Ltd announced that it has commenced the exports of its Made-In-India mid-sized sports utility vehicle Kushaq. The Kushaq was built in line with customers' requirements in India and globally and the SUV will open doors to new markets and regions for the automaker, Piyush Arora, managing director of SAVWIPL, said on Monday. The ŠKODA KUSHAQ …

Skoda Auto Volkswagen Begins Export of SUV Kushaq to Arab Countries
2 years, 5 months ago

Skoda Auto Volkswagen Begins Export of SUV Kushaq to Arab Countries

News 18  

Skoda Auto Volkswagen India on Monday said it has commenced exports of mid-sized sports utility vehicle Kushaq. The company, which manages the Indian region of five Volkswagen Group brands Skoda, Volkswagen, Audi, Porsche, and Lamborghini – has started shipments of left-hand-drive Kushaq to Arab Gulf Cooperation Council countries. In September, Skoda Auto Volkswagen India Pvt Ltd commenced the export of …

Skoda Kushaq becomes third SAVWIPL export vehicle after VW Taigun, VW Virtus
2 years, 5 months ago

Skoda Kushaq becomes third SAVWIPL export vehicle after VW Taigun, VW Virtus

India Today  

Skoda Auto Volkswagen India Pvt Ltd has commenced the export of the Kushaq from India. The Group exports Volkswagen and Skoda cars from India to 44 countries in South America, Central America, Africa, the Indian Subcontinent, Southeast Asia, AGCC and the Caribbean region. The Skoda Kushaq is the third made-in-India car to be exported this year, and we are happy …

Made in India Push: Skoda Auto Volkswagen India Crosses 5 Lakh Exports Mark
4 years, 5 months ago

Made in India Push: Skoda Auto Volkswagen India Crosses 5 Lakh Exports Mark

News 18  

Skoda Auto Volkswagen India Private Limited has marked the export of its 500,000th car manufactured in India. Cars produced at the Skoda Auto Volkswagen manufacturing sites exemplify high quality standards we pursue globally and in India. Over the next years, we will be producing cars based on the new MBQ A0 IN platform with a high degree of localisation and …

Customs dept serves Rs 650 crore notice to BMW
11 years, 10 months ago

Customs dept serves Rs 650 crore notice to BMW

Firstpost  

Customs department will serve Rs 650 crore showcause notice to BMW stating that the luxury carmaker imported semi knocked down cars but paid duty for completely knocked down units. The notice states that BMW imported SKD duty which is 30 percent cars but paid duty for CKD which is at 10 percent. The company clarified as saying, “A inspection is …

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