Volkswagen has sued Indian authorities to quash an "impossibly enormous" tax demand of $1.4 billion, arguing the ask is contradictory to New Delhi's import taxation rules for car parts and will hamper the company's business plans,

Citing legal filings, the report revealed that the auto major’s unit, Skoda Auto Volkswagen India told the Mumbai HC that the tax conflict puts its investments worth $1.5 billion in India at risk.

Volkswagen has filed a lawsuit against Indian authorities over what the brand describes as an "impossibly enormous" tax demand, according to a new report from Reuters — a bill of $1.4 billion.

The dispute, which involves the importation of car parts, could impact the company's business plans and investment in India.

Volkswagen (VWAGY) shares skidded lower as the U.S. slapped tariffs on trading partners, but there are perhaps more pressing import tax matters

After the authorities demand for USD 1.4 Billion in due taxes, Volkswagen countersues India to quash this demand and claims lawful practices.

Volkswagen has challenged a USD 1.4 billion tax demand by Indian authorities, arguing it contradicts New Delhi's car part import taxation rules. The dispute jeopardizes Volkswagen's USD 1.5 billion investments in India.