# JSW Demands Volkswagen Cover $1.4 Billion Tax Bill

> JSW Group wants Volkswagen to pay $1.4 billion in India tax liabilities for a joint venture deal.
- Title: JSW Demands Volkswagen Cover $1.4 Billion Tax Bill | Shortify
- Summary: JSW Group wants Volkswagen to pay $1.4 billion in India tax liabilities for a joint venture deal. JSW Group requires Volkswagen to cover a $1.4 billion tax…
- Keywords: jsw group, volkswagen, india tax bill, joint venture, skoda auto, sajjan jindal, volkswagen india, JSW, Demands, Cover, Billion, Tax
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/auto/auto-news/jsw-wants-volkswagen-to-bear-1-4-billion-india-tax-bill-in-jv-deal/articleshow/134459938.cms
- Author: Bloomberg
- Published: 2026-09-24T11:02:00+00:00
- Read time: 1 min
- Topics: jsw group, volkswagen, india tax bill, joint venture, skoda auto, sajjan jindal, volkswagen india
## Tax Dispute in JV Deal
JSW Group wants Volkswagen AG to cover a $1.4 billion local tax liability in India for a joint venture deal.

> people familiar with the matter said
## Deal Structure Details
The proposed venture would develop, build and market passenger vehicles in India and for export, covering internal-combustion engines, battery-electric vehicles, plug-in hybrids and hybrids.
## Volkswagen's India Strategy
Volkswagen aims to crack into India’s vast, fast-growing car market where it holds only a token share through its Skoda Auto unit.
## Tax Liability Origin
The tax issue stems from the Indian government’s allegation that VW misclassified vehicle assembly kits imported from Germany, Czech Republic and Hungary between 2012 and 2024.
## JSW's Position on Tax
JSW executives state that any tax liability from the pending court case should remain with Volkswagen, and would not proceed with the transaction if it assumed the financial burden.
## Negotiation Delays
Volkswagen’s negotiations with JSW have slowed after Klaus Zellmer left to join Volvo as CEO, and the tax dispute.
## Key takeaway

JSW Group requires Volkswagen to cover a $1.4 billion tax bill in India for a joint venture, risking the deal's completion.