Hero Moto receives tax notices for Rs 605 crore, to appeal against 'unsustainable' demand

Shares of Hero MotoCorp on April 4 closed 0.66 percent lower at Rs 4,526.40 apiece on BSE.

Two-wheeler major Hero MotoCorp has received tax demand notices amounting to nearly Rs 605 crore, inclusive of interest for Assessment Year (AY) 2013-14 to AY 2017-18 and FY19-20 from the income tax department.

Rs 308.65 crore worth of tax notices and interest thereon for Rs 296.22 crore has been imposed on the New Delhi-headquartered firm for six assessment years.

The company informed stock exchange on April 4 that the notices are on account of certain disallowances in the mentioned assessment years, and added that it will be filing appeals against the orders with the appellate authorities, and also file rectification applications.

"In the opinion of the Management, the demand raised is unsustainable in nature, and is unlikely to have material impact on financials, operations or other activities of the Company", the statement by Hero MotoCorp added.

The assessment orders and demand notices were received on April 3 for six assessment years.

The company has been facing inquiry by the Income Tax department regarding specific transactions in June 2023, and an investigation by the Ministry of Corporate Affairs (MCA) had been initiated against the company, according to a Reuters report. In March 2022, income tax department also conducted raids on premises associated with Hero MotoCorp, as part of a probe into an alleged case of tax evasion.

Shares of Hero MotoCorp on April 4 closed 0.66 percent lower at Rs 4,526.40 apiece on BSE.