Maruti Suzuki gets Draft Assessment Order of Rs. 2,160 Crore from Income Tax Department

Maruti Suzuki India has disclosed that the Income Tax department has issued a draft assessment order, indicating pending dues of Rs. 2,160 crore. It stated that the draft assessment order is for the financial year 2019-20.

“The company has received a Draft Assessment Order dated October 3, 2019 from the Income Tax Authority for the financial year 2019-20,” the automaker said in a Bombay Stock Exchange (BSE) filing on Tuesday.

When the assessing officer discovers a discrepancy between the income or loss stated in the assessee’s return, he proposes a Draft Assessment Order for the assessee’s objection or acceptance.

Maruti Suzuki India Ltd stated in the statement, “The company has received draft Assessment Order for the FY 2019–20 wherein certain additions/ disallowances amounting to Rs 2159.70 crore with respect to returned income (the income disclosed by the Company in its Income Tax return) have been proposed.”

The car manufacturer also declared that it would appeal the ruling before the Dispute Resolution Panel. The draftt Assessment Order “has no effect on the financial, operational, or other activities of the Company,” it continued.

The GST Authority also recently issued a show-cause notice to India’s largest automobile manufacturer for the period July 2017 to August 2022 in relation to tax liability on a reverse-charge basis on certain services.

According to an exchange filing, the notice demanded interest and a penalty, in addition to appropriating Rs. 139.3 crore in previously paid tax.