Foxwagen has filed a case against Indian departments for canceling the demand demand of $ 1.4 billion. It has been argued that this demand is unlike India’s imports taxation rules for car parts and this demand will obstruct the company’s business plans. This information has been received from the court document.
Foxwagen’s unit Skoda Auto Foxwagen India also told the Bombay High Court that its tax dispute has put its $ 1.5 billion invested in India and it is harmful to the atmosphere of foreign investment. This information is given in these documents of 105 pages which are not public. But Reuters have seen them.
India gave a tax notice of $ 1.4 billion to Foxwagen in September in the biggest import tax demand demand so far. This tax was given notice in the case of strategy of breaking the imports of Foxwagen, Skoda and Audi cars into several different parts to pay low fees.
Indian officials alleged that Foxwagen imported the ‘almost complete’ car in assembled condition, on which CKD or Complete knock down vehicles (vehicles that are assembled as separated as separate parts). Seems like But he escaped from taxes by paying only five to 15 percent fees, incorrectly classifying them as ‘single parts’ coming in different consignments.
The company challenged in the court, saying that Foxwagen India had informed the Indian government about its ‘Purja-by-Pawa Import’ format and obtained clarification in its support in 2011. The appeal filed in the court on January 29 states that this tax notice is completely contradictory from the situation adopted by the government (and) ends the foundation of the faith and trust that the foreign investor wants in the administration’s actions and assurances. Are.’