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.

The Indian government has accused Kia of misclassifying component imports to evade import taxes to the tune of $155 million.According to a media report, the carmaker allegedly evaded taxes by incorrectly

Two sources said Kia's case was similar to that of Volkswagen, accused of evading a higher tax of 30% to 35% applicable on parts imported in "completely knocked down" or CKD form in a single shipment, instead shipping separate parts over days, making them eligible for a tax rate of just 10% to 15%.

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.