JSW Group Seeks Volkswagen to Cover $1.4 Billion India Tax Liability
JSW Group wants Volkswagen to take responsibility for a $1.4 billion tax liability in India as the two companies negotiate a proposed joint venture for Volkswagen’s passenger vehicle business in the country, Bloomberg News reported on Thursday, citing sources. The companies have reportedly reached a preliminary agreement, but the venture’s valuation and treatment of the potential tax exposure remain unresolved.
The tax issue stems from a 2024 demand against Skoda Auto Volkswagen India, after Indian authorities alleged that the company had misclassified imported components as individual parts to pay lower customs duties. Volkswagen has denied the allegations, saying it complies with Indian laws, and has challenged the tax demand.
The proposed partnership comes as Volkswagen seeks to strengthen its position in India, a key market for its expansion beyond Europe. Reuters said it could not immediately verify the Bloomberg report, while Volkswagen and JSW Group did not immediately respond to requests for comment.
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