Hyundai gets DRI notice for tax evasion; denies allegation
06 August 2011
The directorate of revenue intelligence (DRI) on Friday issued a show-cause notice to Hyundai Motor India, a subsidiary of the Korean carmaker, for evading tax to the tune of Rs266 crore in the last five years.
''We have issued a show cause notice to Hyundai for evading tax between July 2005 and December 2010,'' DRI additional director general C Rajan said. He added that Hyundai will have to reply to the commissioner of seaports, Chennai.
A statement issued by the company said, ''Hyundai Motor India Ltd denies the allegations of tax evasion. All of Hyundai's transactions are on transaction value and there is no instance of tax evasion by the company. The company will seek legal recourse in the appropriate forum.''
R Sethuraman, senior vice president, finance and corporate affairs, added, ''These are baseless allegations and on the transaction value and the relevant duty has been paid to the appropriate authorities with full documentation.''
The country's second-largest carmaker by volumes and sales has a production facility at Sriperumbudur, near Chennai, with a capacity of over 600,000 units annually. With 40 per cent of its production dispatched to 120 countries, Hyundai is the largest car exporter.
The company has invested Rs4,000 crore (inclusive of research centre, engine transmission plant and miscellaneous investments) in the country.