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Volkswagen has contested a $1.4 billion tax demand from the Indian Government in the Mumbai High Court, claiming it threatens its investment and operations in the country. Click for more details.

The dispute, which involves the importation of car parts, could impact the company's business plans and investment in India.

Volkswagen has filed a lawsuit against Indian authorities over what the brand describes as an "impossibly enormous" tax demand, according to a new report from Reuters — a bill of $1.4 billion.

Lawyers representing the company mentioned the petition before the bench of Justices BP Colabawalla and Firdosh Pooniwalla while stating that the plea is challenging a showcause notice issued in September 2024 under the Customs Act.

Some air shipments of car components by Volkswagen India were briefly held up by custom authorities in Mumbai due to a $1.4 billion tax demand, leading to delays in spare part supplies at dealerships,

Volkswagen has slapped the Indian authorities with a lawsuit over a staggering $1.4 billion tax demand.

Bombay High Court to hear Skoda Auto Volkswagen India's plea challenging $1.4 billion tax demand on February 17.

Volkswagen has challenged a $1.4 billion tax demand by Indian authorities, arguing it contradicts New Delhi's car part import taxation rules. The dispute jeopardizes Volkswagen's $1.5 billion investments in India.

Volkswagen has reportedly sued Indian authorities seeking them to set aside the tax demand of $1.4 billion. The auto major has taken the action to qaush the ‘impossibly enormous’ tax ask, arguing that it stands contradictory to the import taxation rules of India for car parts.

Volkswagen has sued the Indian authorities to quash the USD 1.4 billion (over Rs 12,000 crore) tax demand, according to a Reuters report. Volkswagen’s India unit, Skoda Auto Volkswagen India Pvt Ltd has also told the Mumbai High Court that the said tax dispute puts at risk the group’s investments of USD 1.