Hero MotoCorp receives interest and tax notice from IT dept totaling ₹605 Crore

5 Apr 2024 , 11:29 AM

Hero MotoCorp, the producer of two-wheelers, has got a tax demand notice from the Income Tax Department for ₹308.65 Crore and interest of ₹296.22 Crore for six assessment years, according to a stock market filing on Thursday.

The assessment orders and demand notifications cover six assessment years: FY14, FY15, FY16, FY17, FY18, and FY20. The notification is for specific disallowances in the aforementioned assessment years.

The corporation will submit appeals against the orders with the appellate authority, requesting the filing of rectification petitions.

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, according to a news statement issued by the company.

Hero MotoCorp’s total sales climbed 5.5% year on year in FY24 to 56.21 lakh units.

Hero MotoCorp stated that it sold 53,28,546 units in 2022-23.

Motorcycle sales in FY24 were 51,90,672 units, compared to 49,59,156 in FY23. Scooter sales increased to 430,783 units in FY24, up from 369,390 in FY23, according to the business.

Hero MotoCorp Ltd. (formerly Hero Honda Motors Ltd.) is the world’s largest two-wheeler manufacturer, headquartered in India. In 2001, the firm attained the coveted status of being the largest two-wheeler manufacturing company in India, as well as the “World No.1”.

At around 11.24 AM, Hero MotoCorp was trading 0.66% higher at ₹4,553 per piece, against the previous close of ₹4,522.95 on NSE. The counter touched an intraday high and low of ₹4,565.60 and ₹4,468.35, respectively.

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