Kia on Friday said it is contesting an Indian tax demand of $14 million for wrongly using free trade agreements to claim lower tariffs on some electronic car part imports, the latest tax tussle between the South Korean automaker and New Delhi.

South Korean automaker Kia has been accused by India of $155 million tax evasion through import misclassification.

Weeks after German luxury car maker Volkswagen slapped a lawsuit against the government of India over a $1.4 billion tax evasion notice, KIA faces GOI’s sweet chin music for allegedly evading $155 million in taxes. Will the South Korean car maker take the same legal recourse as the Skoda maker?

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,

Kia's Indian subsidiary is currently involved in legal disputes regarding this matter, facing a potential payment of up to $310 million (about 448 billion won) if it loses. Kia's Indian subsidiary noted to Reuters that it is "continuously consulting with local authorities" and has responded with "comprehensive evidence supporting its position."

Kia India faces tax demand notice over component imports, denies wrongdoing, and files detailed response with authorities.

Kia competes with Hyundai and Maruti Suzuki in the world's third-largest auto market, where it has a share of 6% of roughly 4 million units a year, and its Kia Seltos and Sonet SUVs are among the top sellers.

Kia India told the BBC it has already filed a "detailed response supported by comprehensive evidence and documentation" to the tax claim, issued by a customs commissioner in the city of Chennai. It did not provide further details.

South Korean automaker, Kia, is disputing a $14 million tax demand from Indian authorities, the company revealed on Friday. The tax demand alleges that Kia wrongly claimed lower tariffs on certain electronic car part imports,