A lawyer for an Indian unit of German carmaker Volkswagen, said on Monday the country's $1.4 billion tax demand could become a matter of survival for its business in the country, as it continues to contest the order.
The tax notice was slapped on Volkswagen unit Skoda Auto Volkswagen India in September, with Indian authorities claiming the company was using a strategy of breaking down imports of some VW, Skoda and Audi cars into individual parts to pay a lower duty.
The senior advocate representing the unit, Arvind Datar, told the judges that if Volkswagen India were to pay all the claimed taxes and penalties - a total of $2.8 billion - the company, which employs 6,000 people locally, may not be able to survive in India.
"That is the seriousness of the matter... It's a matter of life and death now," he added.
Indian tax authorities have asked the company to pay taxes dating back to 12 years, reigniting concerns of lengthy investigations and litigation that could sour the plans of foreign firms to invest in the fastest-growing major economy.
Indian authorities alleged Skoda Auto Volkswagen India imported almost entire cars in an unassembled condition - which attracts a 30-35% tax - but evaded the levies by mis-classifying them as "individual parts" coming in separate shipments, paying just a 5-15% levy.
The unit went to court last month, arguing the tax demand will hamper its business plans and is detrimental to the foreign investment climate.
Volkswagen is a tiny player in India's car market, the world's third biggest, where its Audi brand lags competitors in the luxury segment like Mercedes-Benz, and BMW (BMWG.DE).
The court will continue hearing the case on Thursday.
In a stern warning to the automaker, the Indian government told a Mumbai court that quashing Volkswagen's demand to cancel a $1.4 billion tax bill would have "catastrophic consequences" and could encourage companies to withhold information and delay inquiries.
Volkswagen is set to recall 60,490 vehicles in the United States after the U.S. National Highway Traffic Safety Administration (NHTSA) identified a potential safety issue. The recall, which affects certain models, is due to a failure to display the gear position.
Volkswagen faces intensified strikes at German plants as workers protest wage cuts and closures amid union talks. With trust eroded, unions demand concessions, warning of longer strikes, while VW cites cost-cutting as essential to compete with cheaper Asian rivals.
Volkswagen workers in Germany will stage warning strikes over layoffs, wage cuts, and plant closures as talks with labour union IG Metall fail to reach a resolution.
Ramadan, a time of fasting, prayer, and reflection, is celebrated uniquely around the world. From vibrant lanterns in Egypt to communal feasts in Turkey, discover the diverse customs that make Ramadan a global celebration of faith.
A powerful 7.7-magnitude earthquake struck Myanmar’s Sagaing region, followed by a 6.4-magnitude tremor, killing more than 1,644 people and leaving 2,300 injured. The quake caused building collapses in Myanmar and Thailand, prompting emergency declarations and ongoing rescue efforts.
UN Secretary-General António Guterres responds to discussions on a potential temporary administration in Ukraine, reaffirming the presence of a legitimate government and clarifying the UN’s role in mediation efforts.
Suicide bomber targets a political protest rally in Balochistan, Pakistan. No civilian casualties reported; the attacker was killed.
Royal Australian Air Force (RAAF) pilots, monitoring a Chinese navy warship as it navigated Australian waters, were alerted to a live-fire exercise via a civilian radio broadcast, defense officials revealed on Tuesday.
A powerful 7.7-magnitude earthquake struck Myanmar’s Sagaing region, followed by a 6.4-magnitude tremor, killing more than 1,644 people and leaving 2,300 injured. The quake caused building collapses in Myanmar and Thailand, prompting emergency declarations and ongoing rescue efforts.
As the world shifts toward clean energy at an ever-accelerating pace, large economies are scrambling to secure reliable supply chains for rare earth minerals. These minerals, once seen as mere industrial components, have become a political tool in the global power struggle
Russian forces carried out a drone attack on Ukraine’s second-largest city, Kharkiv, late Wednesday, injuring at least twenty one people and causing structural damage, according to Ukrainian officials.
A devastating overnight drone attack on Kyiv, attributed to Russian forces, resulted in the deaths of three people, including a five-year-old child, and left ten others injured.
The International Monetary Fund (IMF) Executive Board has completed the Seventh Review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about $0.4 billion, which will be allocated for budget support.
Elon Musk’s xAI has acquired his social media platform X in a $33 billion all-stock deal.
Popular coffee brands are negotiating price hikes with retailers due to a sharp rise in arabica costs, with some supermarket shelves running out of stock. Prices may increase by up to 25% as companies grapple with supply chain pressures.
Zhang Yiming, the founder of Bytedance and owner of TikTok, has become China’s richest person, according to multiple wealth rankings. Bloomberg Billionaires Index places him as the world’s 24th wealthiest individual, with his fortune estimated between $57.5 billion and $65.5 billion.
Canada has suspended Tesla rebate payments and barred the automaker from future EV incentives due to U.S. tariffs. Transport Minister Chrystia Freeland said the freeze will remain until claims are individually reviewed.
Ramadan, a time of fasting, prayer, and reflection, is celebrated uniquely around the world. From vibrant lanterns in Egypt to communal feasts in Turkey, discover the diverse customs that make Ramadan a global celebration of faith.
A powerful 7.7-magnitude earthquake struck Myanmar’s Sagaing region, followed by a 6.4-magnitude tremor, killing more than 1,644 people and leaving 2,300 injured. The quake caused building collapses in Myanmar and Thailand, prompting emergency declarations and ongoing rescue efforts.
UN Secretary-General António Guterres responds to discussions on a potential temporary administration in Ukraine, reaffirming the presence of a legitimate government and clarifying the UN’s role in mediation efforts.
Suicide bomber targets a political protest rally in Balochistan, Pakistan. No civilian casualties reported; the attacker was killed.
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