India's JSW Group wants Volkswagen to cover $1.4 billion tax liability, Bloomberg News reports (updated)

Volkswagen AG

24/09/2026 12:37

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Sept 24 (Reuters) - JSW Group wants Volkswagen VOWG.DE to bear a $1.4 billion domestic tax liability as the companies negotiate a joint venture for the German automaker's passenger vehicle business in India, Bloomberg News reported on Thursday, citing sources. 
While the companies have reached a preliminary agreement, the venture's valuation remains crucial and the treatment of potential tax exposure is a key unresolved issue that could affect the deal, the report said.
Reuters could not immediately verify the report.
Volkswagen and JSW Group did not immediately respond to Reuters' request for comment. 
The Taigun SUV-maker was served with a $1.4 billion tax demand in 2024 after Indian authorities alleged that its unit, Skoda Auto Volkswagen India, evaded customs duties by "mis-declaring and mis-classifying" imports as "individual parts" that attract lower duties. 
However, Volkswagen has maintained that it complies with local laws and has challenged the tax demand. 
The proposed partnership comes after Volkswagen has struggled to scale its presence in India, a key market in its strategy to expand beyond Europe. 

 (Reporting by Saikeerthi in Bengaluru; Editing by Shreya Biswas)
 ((Saikeerthi@thomsonreuters.com; (+91) 8296756080))