Hero MotoCorp received Tax Demand Notice of Rs.605 Crore

Hero MotoCorp, the world’s largest two-wheeler maker, said on Thursday that it has received a tax demand notice from the Income Tax Department for Rs.605 crore, including interest, for six assessment years (FY14 to FY18 and FY20).

“The Income Tax Department issued assessment orders/demand notices dated March 30, 2024, for six assessment years to the company on April 3, 2024,” Hero MotoCorp stated in an exchange filing.

The company has received the aforementioned orders/notices for six assessment years, resulting in a tax demand of Rs.308.65 crore and interest of Rs.296.22 crore. This is due to various disallowances for the assessment years 2013-14, 2017-18, and 2019-20, Hero MotoCorp stated.

The company is currently reviewing the orders/notices received and will take appropriate action, including the filing of appeals and rectification applications.

In response to that, Hero MotoCorp indicated that it will be filing appeals against the orders with the appellate authority, as well as file rectification applications. The company expressed confidence that the increased demand is unsustainable and will not have a significant impact on its financials, operations, or other activities.

The major two-wheeler manufacturer told stakeholders that it remains committed to addressing this issue with diligence and in accordance with the legal process.