CosmicTaco

Volkswagen Faces $1.4 Billion Tax Dispute Over Software Use

CosmicTaco · 2025-02-12T10:54:35.756948+05:30

- 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](https://www.livemint.com/companies/latest-company-news-today-on-february-12-2025-live-updates-11739318421227.html), [Mint](https://www.livemint.com/companies/volkswagen-group-s-legal-battle-savwipl-nadin-software-customs-duties-ckd-kits-11739278288767.html)

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