FACTBOX-India's biggest tax tussles involving foreign companies

MUMBAI, Jan 15 (Reuters) - Foreign companies have often complained about tax uncertainty in India and prolonged litigation related to alleged duty evasion on imports or levies payable on big M&A transactions.

Here are some of the most high-profile tax cases in India.

TIGER GLOBAL

India's top court on January 15 ruled that Tiger Global is subject to taxes on its $1.6 billion sale of a stake in Indian e-commerce firm Flipkart to Walmart WMT.O in 2018.

It will serve as a landmark ruling on companies' use of international tax treaties, and how India taxes cross-border deals.

Tiger Global had claimed tax exemption under India–Mauritius tax treaty, but the Supreme Court ruled the transaction was designed as an "impermissible tax avoidance arrangement".

KIA

South Korea's Kia has been accused of dodging $155 million in taxes by misclassifying car component imports, but the company is contesting the charge privately with officials.

At the heart of the dispute lie Kia's imports of parts of a car in separate shipments to assemble the vehicles in India, paying a lower tax applicable, circumventing the higher tax outgo when parts come together as a CKD, or a completely knocked down unit, of a car.

VOLKSWAGEN

In a case similar to the Kia one, Volkswagen VOWG_p.DE has sued Indian authorities in a Mumbai court after being slapped with a $1.4 billion tax notice for importing parts related to its 14 models, including some Audi ones, instead of classifying them as CKD.

The German automaker's court challenge states that India's "impossibly enormous" tax demand will hit its investment in the country, and foreign investor sentiment.

VODAFONE

In one of the most controversial cases, Vodafone VOD.L was slapped with a $2 billion tax demand when it purchased Indian assets of Hutchison Whampoa in an $11 billion deal in 2007.

The dispute caused years-long litigation including a ruling in the company's favour by India's top court, followed by a change of law which reimposed the demand and international arbitration between the sides. Vodafone won the arbitration case in 2020.

CAIRN ENERGY

Britain's Cairn Energy faced a more than $1.4 billion tax demand over the transfer of shares during an internal reorganisation in 2007.

In 2011, Cairn Energy sold its majority stake in Cairn India to Vedanta Ltd, reducing its share in the Indian company to about 10%.

The Indian administration and Cairn India settled the years-long dispute in 2021 by offering to refund the tax amount.

PERNOD RICARD

French liquor giant Pernod Ricard PERP.PA has been accused by Indian authorities of undervaluing certain imports for more than a decade to avoid full payment of duties.

India is demanding roughly $250 million in back taxes but the maker of Chivas Regal and Absolut vodka has contested the findings. The dispute is pending.

In 2022, Pernod warned Prime Minister Narendra Modi's administration that its long-running tax disputes with authorities on valuing liquor imports have inhibited new investment and its current business.

BYD

Chinese automaker BYD has been accused by Indian authorities of underpaying $8.37 million on parts for cars it assembles and sells in India.

BYD later deposited the demand but the probe is still ongoing and could lead to additional tax charges and penalties, Reuters has reported.