Indian tax authorities have sent a confidential notice to South Korean car maker Kia Motors accusing it of evading millions of dollars in taxes. The amount could be as high as $155m (£125m) and the notice was sent in April last year, according to Reuters.

India has accused South Korea’s Kia of evading taxes of $155 million (Rs 1356 crore) by misclassifying component imports but the carmaker has denied wrongdoing, the latest fight by a foreign automaker with New Delhi over tariffs, according to a document and two sources.

According to the notice, Kia India wrongly declared imports of components for Carnival MPV’s assembly process.

As per industry sources, the tax authorities have slapped the automaker a notice to the tune of USD 155 million for wrong declaration of imports of components for the assembly of its premium model Carnival.

India has accused South Korea's Kia of evading taxes of $155 million by misclassifying component imports but the carmaker has denied wrongdoing, the latest fight by a foreign automaker with New Delhi over tariffs,

South Korea's Kia has been accused by India of evading taxes amounting to $155 million through misclassification of component imports, Reuters reported on Wednesday, citing a government document and two sources.