Chinese EV maker BYD under the lens for tax evasion in India

The Directorate of Revenue Intelligence (DRI) alleged that the carmaker underpaid tax of US$ 9 million.

Chinese EV maker BYD made headlines recently after its US$1 billion investment proposal was blocked by the Indian government. According to the latest reports, the carmaker is now under investigation for alleged tax evasion.

BYD is said to have paid less tax on imported car parts used in the vehicles assembled by the company in India. The Directorate of Revenue Intelligence (DRI) alleged that the carmaker underpaid tax of US$ 9 million. While BYD has since deposited the sum, reports suggest that the investigation could lead to additional tax charges and penalties.

Chinese investments have been on the radar of Indian agencies since border tensions flared up between India and China back in 2020. Last month, BYD cancelled its investment plan after the proposal was rejected by the government of India. The carmaker had proposed to set up an EV manufacturing unit in partnership with Megha Engineering and Infrastructures.

BYD is the largest producer of EVs and plug-in hybrid vehicles. It currently offers the Atto 3 electric SUV and e6 MPV in India.

Source: ET Auto