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Chinese carmaker BYD faces Indian tax investigation over underpayment of levies on imported EV parts: sources
- India’s Directorate of Revenue Intelligence alleges that BYD underpaid taxes of US$9 million, a source says
- New Delhi recently rejected BYD’s bid to build a US$1 billion EV plant in the country
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Chinese carmaker BYD faces an ongoing Indian investigation over allegations that it paid too little tax on imported parts for cars it assembles and sells in the country, two sources with direct knowledge of the matter said.
India’s Directorate of Revenue Intelligence (DRI) has alleged that China’s largest electric vehicle (EV) maker, whose expansion plans have been hit by fractious relations between New Delhi and Beijing, underpaid tax of 730 million rupees (US$9 million), one of the sources said.
Although BYD has deposited this sum after the DRI’s preliminary findings, the source added, the investigation is ongoing and could lead to additional tax charges and penalties. The DRI is yet to issue a final notice to BYD, which can challenge the findings.
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BYD in India and China did not reply to several requests seeking comment. India’s finance ministry did not reply to an email and WhatsApp message seeking comment.
News of the tax investigation comes after New Delhi rejected BYD’s bid to build a US$1 billion EV plant in the country, amid tighter rules on foreign investment from bordering nations, including China.
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Companies from China have come under the spotlight in India since 2020 when border clashes broke out between the neighbours.
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