The Directorate of Revenue Intelligence have issued a showcause notice to Korean car marker Hyundai Motor's Indian subsidiary.
The Directorate has issued the notice for suspected tax evasion by the country's second largest car manufacturer to the tune of Rs 260 crore duty. Company officials have confirmed receipt of the notice, but denied the charges.
A senior official from the Directorate said, “We have found they (HMIL) evaded Rs 266 crore duty on import of automobile components over the last five years from July 2005 to July 2010”. He added they (HMIL) have to reply to the Commissioner of Seaports Chennai.
R Sethuraman, senior vice president, finance and corporate affairs, HMIL said, “These are baseless allegations and on the transaction value and the relevant duty has been paid to the appropriate authorities with full documentation. We will respond to the notice legally.”
The country's second-largest car-maker has a production facility at Sriperumbudur, near Chennai, has a capacity of over 600,000 units annually, making it the second-largest car manufacturer. With 40 per cent of its production dispatched to 120 countries, Hyundai is the largest car exporter.
The company has invested Rs 4,000 crore (inclusive of research centre, engine transmission plant and miscellaneous investments) in the country.
