Skoda Auto Volkswagen India is likely to face Rs. 24,000-crore fine
Skoda Auto Volkswagen faces a potential Rs. India's Skoda, Volkswagen and Audi brands fined Rs 24,000 crore for allegedly evading taxes on imported auto parts through misclassification The Indian government has accused Skoda Auto and Volkswagen India of evading import duties worth $1.4 billion (roughly Rs. 12,000 crore) over the past decade by misclassifying imported auto parts. If proven guilty, the carmaker could face a penalty of double the tax shortfall, which could amount to a total liability of Rs. 240 billion rupees. Charges of misclassification and evasion A notification issued by the customs department on September 30 said that Skoda Auto Volkswagen India imported almost complete cars in an unassembled state but declared them as "single components" and not as completely knocked down (CKD) units. This classification reportedly allows automakers to pay lower import duties, ranging from 5% to 15%, instead of the higher 30%-35% tax that applies to CKD units. Models reportedly affected by this alleged practice include…
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