Skoda Auto VW Receives 1.4 billion US Dollars Tax Evasion Notice By Indian Government, Here’s Why
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the report stated that Skoda Auto VW India has paid over 980 US dollars to the government as import taxes only since 2012.
Representational image, (Photo: Skoda)
The leading car maker Volkswagen has received a tax evasion notice from the Indian government. It has been reported that the government has slapped the brand over alleged tax evasion of more than a billion US dollars.
It has been reported that this comes after the concerned authority witnessed that the company paid less import tax on components for the brand that comes under its umbrella. The list includes Skoda, VW and Audi models.
Here’s What Report Says
As per the details available on the Internet or have been shared by multiple platforms, the comapny used to import almost the entire car in unassembled condition, terming it as individual parts and cutting the taxation on the process.
The report suggested that it has paid somewhere around 5 to 10 percent import duties only. However, CKD technically attracts an import duty of around 30-35 percent on imports.
Notice From Government
As per the details shared by the Teambhp, the Officer of the Commissioner of Customs in Maharashtra has issued a 95-page notice to Skoda Auto VW India. It said the company used multiple methods to evade detection and escape the higher tax payments.
The brand was using different shipment consignments to save taxation on top-selling models like Kodiaq, Skoda Superb, Audi Q5, VW Tiguan, and A4, the report added.
Original Tax Figures
In addition, the report also stated that Skoda Auto VW India has paid over 980 US dollars to the government as import taxes since 2012. However, it was supposed to pay around 2.35 billion US dollars for the same.
