Japanese car maker Nissan’s Indian arm has reportedly sought a value added tax refund of close to Rs 2,000 crore from Tamil Nadu government. Certain provisions of Indo-Japan bilateral tax treaty say the manufacturer can claim VAT refund for sale of products made in a state and sold within the state boundaries. TN refunded the Investment Promotion Subsidy dues for the car maker a couple of months ago, but has refused to acknowledge the VAT dues claims made by the company.
