Chinese carmaker BYD caught up with Indian tax investigation

The Tax Intelligence Department (DRI) claimed that the underpaid tax of 730 million rupees, although the automaker has since invested the money in the import of EVs, depends on the price of the vehicle but has a 15% or 35% duty on imports of local materials on EVs.

The Indian Ministry of Intelligence (DRI) claimed that the Tax payment of China's largest energy producer, whose expansion plans were affected by the crisis between New Delhi and Beijing, was 7.3 billion rupees.

The source added that although BYD deposited the money after DRI's initial findings, the investigation is still ongoing and could result in additional taxes and penalties. DRI has yet to issue a final report to BYD that could question the findings.

BYD did not respond to appeals from India and China. India's financial institution did not respond to emails and WhatsApp messages seeking comment. BYD said it has decided to discontinue its investment plans for the Indian joint venture capital partners.

Since a border dispute broke out between neighbouring countries in 2020, Chinese companies have become important in India. Smartphone manufacturer Xiaomi is accused of illegally sending money to foreign entities in the name of copyrights.

Such as battery packs or motors not attached to the chassis of the car. A source said that since BYD does not meet these conditions, it will have to pay 70 percent or 100 percent of the price of the car. The duration of the alleged violation of the article and the number of vehicles involved are not clear.

BYD has invested more than $200 million in India, sold the Atto 3 electric SUV and the e6 EV to companies, and plans to launch its Seal electric sedan later this year. According to government registration data, the company has sold about 1,960 units in India since it went on sale in 2022.