Volkswagen India allegedly evaded $1.4B in taxes in India, Reuters reports

India has issued a notice to Volkswagen (VWAGY) for allegedly evading $1.4B in taxes by paying less import tax on components for its Audi, VW, and Skoda cars, Aditi Shah, Aditya Kalra, and Nikunj Ohri of Reuters reports. A notice dated September 30 says Volkswagen used to import “almost the entire” car in unassembled condition, which attracts a 30%-35% import tax in India, but evaded levies by “mis-declaring and mis-classifying” those imports as “individual parts” and paying 5%-15% duty. These imports were made by Skoda Auto Volkswagen India for its models including Skoda Superb and Kodiaq.