Source : PTI | Carmakers and local authorities in India are embroiled in USD 6 billion worth of tax disputes spanning years of scrutiny by the income tax, customs and excise departments.
Here are some of the biggest of those disputes, based on a Reuters analysis of the companies’ latest financial disclosures.
Maruti Suzuki, majority-owned by Japan’s Suzuki Motor Corp, is disputing USD 2.4 billion in tax demands, of which about USD 2 billion is with the income tax department. Other major tax claims have been made by the excise and state authorities, with some dating back to the early 1990s.
German automaker Volkswagen’s local unit, Skoda Auto Volkswagen India, is fighting disputes worth USD 1.2 billion mainly with the tax and excise authorities. This excludes India’s recent USD 1.4 billion import tax demand of the company.
Income tax and excise disputes make up the bulk of USD 694 million worth of demands faced by SUV-maker Mahindra & Mahindra.
South Korea’s Hyundai Motor is disputing close to USD 490 million of demands, of which about USD 167 million is from customs tax authorities, making it among the highest customs tax demands from carmakers in the country.
Japan’s Honda Motor is battling tax disputes of USD 323 million, with income tax demands making up about 90% of the issue.
Japanese automaker Toyota Motor Corp is disputing USD 272 million of tax demands, mainly by the income tax and excise authorities.
