Chinese carmaker BYD faces tax investigation in India: Report

Chinese automaker BYD, which was recently rejected from settin up its USD 1 bn EV plant in Hyderabad, is facing an ongoing investigation by Directorate of Revenue Intelligence (DRI) for paying too little tax on imported parts for cars it assembles and sells here.

According to reports, 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 ($9 million).

The report said that though BYD has deposited the remaining amount after the DRI's preliminary findings, another probe has been launched to check additional tax charges and penalties. The DRI is yet to issue a final notice to BYD, which can challenge the findings.

Last month, the Centre reportedly had rejected BYD Motors' proposal to set up a $1 billion four-wheeler manufacturing facility in India in partnership with Hyderabad-based Megha Engineering and Infrastructures Ltd.

Chinese tech firms under scrutiny in India

In recent years, Chinese companies in India have faced increased scrutiny following border clashes between the two nations in 2020. Smartphone maker Xiaomi Corp has also encountered allegations of illegal remittances to foreign entities in the name of royalties.