Volkswagen India has been accused of allegedly evading $1.4 billion in taxes by paying less import duties on components for Audi, VW, and Skoda branded cars.
The Indian government issued a notice to Volkswagen India about evading levies by 'mis-declaring and mis-classifying' imported car parts.
Volkswagen imported unassembled car parts, but declared them as 'individual parts' to pay lower taxes between 5%-15% instead of 30%-35%.
The investigation found that different shipment consignments were used to evade detection and 'willfully evade payment.'