Volkswagen accused of evading $1.4 billion in taxes by misclassifying imported car parts, facing investigation.

The government of India has issued a notice to Volkswagen alleging tax evasion to the tune of US$1.4 billion. It is said that the company paid less import tax on components for Skoda, VW and Audi models.

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,

Skoda Auto Volkswagen India has been issued a notice by the government of India for supposedly evading USD 1.4 billion in taxes by 'wilfully' paying lesser import tax on parts for its Skoda, VW, and Audi cars, as per a document, making it one of the biggest demands of this nature, Reuters noted.

Government has issued a notice to German automaker Volkswagen for allegedly evading $1.4 billion in taxes by "willfully" paying lesser import tax on components for its Audi, VW and Skoda cars, a document shows,

Imports were made by VW India, Skoda India, for its models including the Skoda Superb and Kodiaq, luxury cars like the Audi A4 and Q5, and VW's Tiguan SUV.

Volkswagen used to import ’almost the entire’ car in unassembled condition—which attracts a 30-35 per cent import tax in India under rules for CKD or completely knocked-down units

The Centre on Friday issued a $1.4 billion ( ₹11,842 crore) notice to German auto giant Volkswagen for allegedly evading taxes by “wilfully” paying lesser import taxes on components for its Audi, VW and Skoda cars,

Different shipment consignments were used to evade detection and "willfully evade payment" of higher taxes, the Indian investigation found

Since 2012, Volkswagen's India unit should have paid import taxes and several other related levies of about $2.35 billion to the Indian government, but paid only $981 million, amounting to a shortfall of $1.

India has accused Volkswagen of evading $1.4 billion in taxes by misclassifying car component imports as individual parts. This allowed Volkswagen to pay lower import taxes. The company may face penalties up to $2.