Thursday, 9 May 2013

Indian Tax authorities likely to serve Rs 650 Crore notice to BMW India



The Tax authorities in India suspect that the luxury carmaker has evaded about Rs 650 Crore as tax duties in India and is likely to serve a notice to German Luxury carmaker.

Officials of the Department of Revenue Intelligence and Customs are jointly investigating BMW. The searches are taking place in the backdrop of increased scrutiny of tax practices by multinationals operating in India.

The searches have been taking place over the last few days and tax authorities believe BMW was importing parts like engines, gearboxes and transmissions in a pre-assembled format without paying the required duty of 30%.

The company has been showing in its books that these parts are non-preassembled parts, or completely knocked down units, and has been paying only 10% duty, according to a source.

The Luxury carmaker produces MINI, BMW 3 series, BMW 5 series, BMW X1 and BMW X3 at its facility in Mahindra World City, Chennai.

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