Hyundai Motor denies duty evasion

August 6th, 2011 - 7:55 pm ICT by IANS  

Chennai, Aug 6 (IANS) India’s second largest car manufacturer and largest car exporter Hyundai Motor India Ltd Saturday denied evading import duty and said it would contest the tax demand at the appropriate forum.

“It is a question of interpretation. The charge by the directorate of revenue intelligence (DRI) is baseless. We have imported auto components with proper documents and transaction value,” Senior Vice President (Finance and Corporate Affairs) R. Sethuraman told IANS.

The DRI sent a notice to Hyundai Motor Friday alleging duty evasion between 2005 and 2010 to the tune of Rs.266 crore by misdeclarations.

According to Sethuraman, there is no reason for the company to evade duties as the disputed value (Rs.266 crore) represents just two percent of total import value of approximately Rs.14,000 crore during the last five years.

He said the company will challenge the notice at the appropriate forum.

Sethuraman said the company’s major imports are from Korea where the parent company is located.

He denied that the company has been declaring differential value for the same imported components.

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