New Delhi [India] April 5 : Two-wheeler manufacturer, Hero MotoCorp, disclosed has received tax demand notice from the Income Tax department for Rs. 308.65 crore and interest thereon of Rs. 296.22 crore for six assessment years, the firm said in a stock exchange filing on Thursday.
The company said that it received assessment orders and demand notices dated March 30, 2024, on April 3, 2024.
The statement by the company revealed that it has received the aforesaid notices pertaining to six assessment years, amounting to a tax demand of Rs. 308.65 crore and interest thereon of Rs. 296.22 crore. This is on account of certain disallowances, for the assessment years 2013-14 to 2017-18 and 2019-20.
A statement by the Hero MotoCorp read that it is currently evaluating the orders and notices received and will take appropriate actions, including filing appeals and rectification applications as necessary. The company emphasized its commitment to complying with all legal and regulatory requirements.
The tax demand notices are likely to have implications on the company's financials and operations, depending on the outcome of its examination and subsequent actions taken.
The specifics of the demands and the reasons behind them have not been disclosed by Hero MotoCorp. The company's response to the notices will be closely monitored by investors and stakeholders, as it could impact the company's financial performance and reputation in the market. However, the statement by the company further added that the demand raised is unsustainable in nature, and is unlikely to have material impact on financials, operations or other activities of the Company.
Hero MotoCorp's ability to effectively address the tax demands and navigate through the legal proceedings will be critical in maintaining investor confidence and sustaining its business operations smoothly.
As the situation unfolds, stakeholders will keenly await further updates from Hero MotoCorp regarding its response to the tax demands and any potential implications on its financial outlook and operations.
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