Hyundai Motor India Ltd (HMIL) is going to challenge the Directorate of Revenue Intelligence (DRI) against their notice about tax evasion. The revenue watchdog, DRI issued a notice to the company on Friday for alleged tax evasion between 2005 and 2010, to the tune of Rs.266 crores. A statement released by the company states that, ”the show-cause notice served on HMIL by the Directorate of Revenue Intelligence will be challenged by HMIL under the due process of law in the appropriate forum”.
Denying all the allegations made by the DRI, company said that the relevant duty has always been paid with full documentation. Furthermore, the company advocates that all the claims made by DRI are false, baseless and unfounded. Earlier on Sunday, R. Sethuraman, Senior Vice President, Finance and Corporate Affairs of HMIL, said that the company’s legal team is already in the process of preparing an appropriate response for the show-cause notice substantiating our legally compliant methods of conducting business in India. He further added that the company’s major imports come from its parent company in Korea. Additionally, he completely denied any wrong doing or discrepancies in import values on the part of company.
eading business magazine, Mint had earlier reported that DRI issued an alert to its various offices in December, asking officials to keep “a close watch” on Hyundai. The company denies all such allegations or any wrongdoing and said that “the disputed amount of Rs.266 crores makes the 2% of the total import value, which is Rs.14, 000 crores in the last five year”.
HMIL released a statement on Sunday, saying that,”Hyundai Motor India Limited (HMIL) abides by all the statutory norms laid down under the law”. Furthermore, “HMIL totally denies the allegations of resorting to mis-declaration of the value of components imported by it for the manufacture of passenger cars or having suppressed information of the same”. The company was quick to add that it has filed every single invoice, agreement and bill of entry with the customs department. All the prescribed procedures have been duly completed leaving no scope for suppression of any kind.
MIL enjoys the ‘Accredited Client Programme Facility’ from the Government of India. This is a prestigious status given exclusively to the largest exporters from India. The company which started its operation in India in the year 1998 is currently the largest exporter of passenger cars from India. Exporting to 140 countries, the company has earned over $8.5 billion as export revenue over the past ten years. The central and state taxes paid by the company so far amount up to Rs. 26,800 crores.
ederation of Indian Export Organisation awarded HMIL with ‘Niryat Shree’ Gold and Silver Trophies for 2008-09. With this, the company was recognised as one of the highest foreign exchange earners in India. The list of awards also includes the ‘All India Award for Export Excellence’ 2008-09, by the Engineering Export Promotion Council. Moreover, the company has captured a prominent market space since its entrance in India and has become foremost choice of many Indian customers.
