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Volkswagen Faces $1.4 Billion Tax Dispute Over Software Use

  • Volkswagen is embroiled in a $1.4 billion tax dispute with the Indian government over its use of the NADIN software to import car parts at lower duties. The government claims this circumvents higher CKD kit duties.
  • SAVWIPL argues that NADIN is a standard industry practice for production planning and not a means to evade taxes. The company has filed a petition in the Bombay High Court to challenge the tax notice.
  • The outcome of this case could set a precedent for other multinational companies using similar ERP systems, potentially impacting tax compliance interpretations in the automotive industry.

Source: Mint, Mint

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