Kia Issued Notice For Evading $155 Million In Taxes By India: Report

The Indian government has issued a notice to  Kia for evading $155 Million in taxes according to a report in Reuters. The report further states that tax officers sent a confidential notice to Kia's Indian unit in April 2024, flagging alleged tax evasion of ₹13.5 billion. The offence is centred on incorrect declaration of imports of components for the assembly of the carmaker's luxury MPV- the Carnival. It is the only model currently that the company brings to India as a Completely Knocked Down (CKD) unit and is assembled at the Anantapur plant. 

However, Kia has denied any wrong-doing and says that it complies with all the regulation. In a statement issued to Acko Drive, Kia has said, “Regarding the current matter, we have already filed a detailed response, supported by comprehensive evidence and documentation to substantiate our stand.” 

The 432-page notice issued by the government said that tax authorities found Kia's Carnival "car model was being imported in parts or components in separate lots" via different ports, with the "intent to discharge lesser customs duty".

Kia India again maintains that it has given authorities comprehensive evidence. In a statement issued by the company, it said, “However, as the issue is currently under consideration of the relevant authorities, we won't be able to comment further or provide additional details on the matter as of now. We remain committed to complying with all due processes and regulations.”

The company has also said that it has deposited ₹ 278 crore "under protest" as it continues to fight the Indian tax notice.