On Thursday, Hero MotoCorp, the largest manufacturer of two-wheelers globally, announced receiving a tax demand notice from the Income Tax Department totaling ₹605 crore, including interest, for six assessment years (FY14 to FY18 & FY20).
Hero MotoCorp stated in an exchange filing that on April 3, 2024, it received assessment orders/demand notices dated March 30, 2024, regarding six assessment years from the Income Tax Department.
Hero MotoCorp added that it has received orders/notices related to six assessment years, totaling a tax demand of Rs. 308.65 crore and interest of Rs. 296.22 crore. This is due to certain disallowances for the assessment years 2013-14 to 2017-18 and 2019-20.
The assessment orders and demand notices cover six assessment years: FY14, FY15, FY16, FY17, FY18, and FY20. The notice is due to specific disallowances in those assessment years.
Hero MotoCorp stated that it is reviewing the received orders/notices and will take necessary actions, such as filing appeals and rectification applications.
The Management believes that the demand raised is unsustainable and may not be reflected in the exchange filing.
Earlier this week, the company announced a 5.5% increase in total sales, reaching 56,21,455 units in 2023-24 compared to the previous fiscal year when it sold 53,28,546 units.
Hero MotoCorp reported motorcycle sales of 51,90,672 units in FY24, up from 49,59,156 units in FY23. Scooter sales also saw growth, reaching 430,783 units in FY24 compared to 369,390 units in FY23.
The company noted that domestic sales were up in FY24, totaling 54,20,532 units compared to 51,55,793 units in FY23. Additionally, exports rose to 2,00,923 units in FY24 from 1,72,753 units in FY23.
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