Hero MotoCorp Faces ₹605 Crore Tax Demand Notice from Income Tax Department

GG News Bureau
New Delhi, 5th April. Hero MotoCorp, the largest two-wheeler manufacturer in the country, announced on Thursday that it has been issued demand notices by the Income Tax department totaling 605 crore rupees, including interest, for six assessment years.

The company disclosed in a regulatory filing that on April 3, 2024, it received assessment orders and demand notices dated March 30, 2024, from the Income Tax department for six assessment years. Hero MotoCorp is currently reviewing the notices and plans to take necessary actions, such as filing appeals and rectification applications.

The tax demand amounts to 308.65 crore rupees with an additional interest of 296.22 crore rupees for the six assessment years, due to certain disallowances for the years 2013-14 to 2017-18 and 2019-20.

Hero MotoCorp stated that, in their opinion, the demand is unsustainable and is not expected to significantly impact the company’s finances, operations, or other activities.

On Thursday, the company’s shares closed 0.75% lower at 4,522.30 rupees per share on the BSE.