I-T department likely to send Rs. 650 crore show-cause notice to BMW

I-T department likely to send Rs. 650 crore show-cause notice to BMWThe Income Tax (I-T) department of the government of India has indicated that it will soon send a Rs 650 crore show-cause notice to German luxury car maker, BMW.

The company has been served with the tax notice after Department of Revenue Intelligence and the Customs Department, Chennai found that the super car manufacturer has indulged in customs duty evasion. Officials have said that that the income tax department is likely to send the show cause notice to the company within two weeks.

Tax officials found that the company was importing semi knocked down units of cars instead of completely knocked down units as claimed by the company. Under the current regulations, the duty for semi knocked down units is at 30 per cent and that for completely knocked down units is at 10 per cent. The completely knocked down units attracts less duty as there is no value addition within the country.

The company has responded to the reports by saying that the officials are conducted investigations at its Chennai plant and it is fully cooperating with the authorities. One official said that The Central Board of Excise and Customs in Chennai will send the notice to the company soon.