Hyundai Motor India Faces Tax Demand Of Over Rs 5 Crore from Maharashtra Authorities
The notice, issued on Monday, to Hyundai Motor India cites discrepancies in ITC claims and tax paid under the reverse charge mechanism
Hyundai Motor India Ltd (HMIL) has received a show cause notice from the Maharashtra State Tax Authority demanding over Rs 5 crore, including interest, for alleged excess claims of input tax credit (ITC). The notice, issued on Monday, November 25, cites discrepancies in ITC claims and tax paid under the reverse charge mechanism (RCM).
According to the regulatory filing, the total demand comprises Rs 2.741 crore towards tax and Rs 2.279 crore in interest. HMIL said that it plans to respond to the notice within the prescribed timelines and assured stakeholders that the issue would not affect the company's financial or operational activities.
"This notice pertains to routine compliance, and the company is addressing the matter through appropriate channels," Hyundai Motor India clarified.
Despite this development, HMIL remains focused on its operations as a key player in the Indian automobile sector. The company, headquartered in Gurugram, Haryana, represents the Indian subsidiary of the South Korean automotive giant Hyundai Motor Company.
However, the company reported a 16 per cent decline in net profit for the July-September quarter, attributed to weakened domestic demand and disruptions in exports caused by the Red Sea crisis. Hyundai Motor India' net profit fell to Rs 1,375.47 crore compared to Rs 1,628.46 crore in the same period last year, while revenue dropped 7.5 per cent to Rs 17,260.38 crore from Rs 18,659.69 crore.
Hyundai Motor India, which was publicly listed recently, maintains that the tax notice will not hinder its growth or operations. The company is committed to addressing compliance matters while continuing to strengthen its position in the Indian market.
Hyundai Motor India shares closed at Rs 1880.15 apiece, rising 1.51 pee cent on the BSE on Tuesday.
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