Hyundai Accused of Evading Taxes; Denies Charges

Published: Saturday, August 6, 2011, 17:08 [IST]

Hyundai Motor India Limited. Appears to be stuck in a legal tangle after the Directorate of Revenue Intelligence (DRI) circulated a show cause notice on Friday to the country"s second largest carmaker accusing it of tax evasion. As per the show cause notice, the DRI has accused Hyundai of evading tax up to Rs.266 crores in the past five years.

DRI additional director general C Rajan said: “We have issued a show cause notice to the Indian unit of Hyundai Motors for evading tax to the tune of Rs.266 crore between July 2005 and December 2010. And we are expecting the automobile maker to reply to the Commissioner of Seaports Chennai as quickly as possible."

Hyundai has denied the DRI's charges and has given a statement that states: “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."

And the senior vice president, finance and corporate affairs of HMIL Mr. R Sethuraman stated that the allegation issued is entirely baseless and the company has paid all the taxes and relevant duties to the appropriate authorities with complete formalities of documentation. And further we will answer in legal terms to the notice.

Article Published On: Saturday, August 6, 2011, 17:08 [IST]

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