Kia India Faces USD 155 Million Tax Demand for Component Imports

New Delhi, Feb 6 (PTI) Kia India has received a tax demand notice from the authorities over component imports even as the automaker has denied any wrongdoing noting that it has filed a "detailed response" regarding the matter.

As per industry sources, the tax authorities have slapped the automaker a notice to the tune of USD 155 million for wrong declaration of imports of components for the assembly of its premium model Carnival.

When contacted over the issue, the automaker stated that as a responsible and law-abiding brand, it is committed to following all regulatory requirements in its operations.

"We have consistently cooperated with the authorities whenever required, and we remain dedicated to ensuring complete transparency throughout all processes," it added.

It further said: "Regarding the current matter, we have already filed a detailed response, supported by comprehensive evidence and documentation to substantiate our stand." However, as the issue is currently under consideration by the relevant authorities, the company said it would not be able to comment further or provide additional details on the matter.

"We remain committed to complying with all due processes and regulations," it said.

Skoda Auto Volkswagen India, which represents the Volkswagen group in the country, has already filed a case against tax authorities over the Rs 11,000 crore (about USD 1.4 billion) show cause notice for alleged customs duty fraud related to the import of cars as completely knocked down units.

The Bombay High Court is scheduled to hear the matter on February 17.