Kia contests $14 million India tax demand for wrongly using trade treaty exemptions
free trade agreements to claim lower tariffs on some electronic car part imports, the latest tax tussle between the South Korean automaker and New Delhi.
Budget with ET
Tax calculator
Tax investigations in India can drag on for years and are often a sore point for foreign companies. Kia is separately fighting a $155 million tax evasion notice, and Volkswagen has sued New Delhi against a record $1.4 billion demand it calls «impossibly enormous.»
Kia commented on Friday for the first time on the Indian authorities' 2023 confidential notice, which is not public but was reviewed by Reuters. It alleges that Kia imported some electronic parts but «wrongly» claimed benefits of lower duties which did not apply to those components under India's free trade agreements with Korea and ASEAN nations.
The «issue regarding misclassification is an interpretational issue», Kia said in a statement, adding that the company has submitted a detailed response to the tax authorities who are still reviewing the matter.
Such issues «are usually sorted out at the regulatory authorities' level only and some may have to be taken to a higher level depending on the severity of interpretation,» Kia India said in an emailed response to Reuters.
Artificial Intelligence(AI)
Java Programming with ChatGPT: Learn using Generative AI
By — Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Basics of Generative AI: Unveiling Tomorrows Innovations
By — Metla Sudha Sekhar, IT Specialist and Developer
Artificial Intelligence(AI)
Gene
