Volkswagen Challenges India's $1.4 Billion Tax Demand in Landmark Legal Battle

German automaker Volkswagen has filed a lawsuit in the Bombay High Court against Indian authorities over a massive $1.4 billion tax demand. The dispute centers on Volkswagen's import strategy of breaking down VW, Skoda, and Audi cars into individual parts, paying 5-15% duty instead of the 30-35% tax applicable on completely knocked down units. The company argues this threatens its $1.5 billion investment in India and could result in penalties up to $2.8 billion if lost. The case hearing is scheduled for February 5.

Source: Reuters