News Brief
Chinese Automaker BYD Faces Tax Evasion Probe Days After Government Reportedly Rejected $1 Billion Investment Proposal
Swarajya Staff
Aug 02, 2023, 03:30 PM | Updated 03:30 PM IST
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
China's largest electric vehicle (EV) maker, BYD, is currently under investigation by India's Directorate of Revenue Intelligence (DRI) over alleged tax evasion related to imported car parts used in its assembly and sales operations in the country, according to two sources familiar with the matter.
The DRI has accused BYD of underpaying taxes on imported components, amounting to Rs 73 crore ($9 million), as reported by one of the sources.
Although BYD has deposited this sum following the DRI's preliminary findings, the investigation remains ongoing, and further tax charges and penalties could be imposed depending on the final outcome.
BYD's expansion plans in India have already been affected by the strained relations between New Delhi and Beijing.
Last month, the Indian government reportedly rejected BYD Motors' proposal to establish a $1 billion four-wheeler manufacturing facility in the country. The proposed venture was intended to be a partnership with Hyderabad-based Megha Engineering and Infrastructures Ltd.
Chinese investments in India have come under increased scrutiny amidst ongoing tensions along the Line of Actual Control (LAC).
The Indian government has emphasized that the restoration of normalcy in India-China relations is contingent upon a peaceful atmosphere at the border, and that relations will only return to track after disengagement and de-escalation along the LAC, a process in which China appears reluctant to participate.
Save & read from anywhere!
Bookmark stories for easy access on any device or the Swarajya app.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.