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.

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.

India has accused South Korean carmaker, Kia of evading taxes of $155 million by missclassifying component imports, reported Reuters quoting a document and two sources. The latest conflict comes in a series of such rifts between a foreign automaker with New Delhi over tariffs.