I-T Department Serves Hero Motocorp Tax Notice Totaling Rs 650 Crore

Hero Motocorp has been served with tax demand notice by the Income Tax department for ₹296.22 crore plus interest to the tune of ₹296.22 crore for six assessment years - FY14, FY15, FY16, FY17, FY18, and FY20. Certain disallowances in these years were cited as the reason behind the notice. 

However, Hero Motocorp has confirmed that it will file an appeal against the orders with appellate jurisdiction. In the stock exchange filing today, the company declared that the demand raised by the I-T department is “unsustainable in nature”. 

(Also Read: Auto Sales March 2024: Hero MotoCorp Sales Dip in March 2024)

Hero Motocorp has been at the top of the Indian two-wheeler industry with the most sales. The brand maintained its lead throughout FY24 and closed the year on a high note again by retailing 4,59,257 units in March 24’. However, from a Year-on-Year growth perspective, this depreciation was 8.64 per cent. On the brighter side, its exports grew by 87 per cent, which is quite a significant growth. 

(Also Read: New Hero ‘Vida Advantage Package’ Introduced At No Extra Cost)

Reacting to this latest notice served, Hero Motocorp has assured its investors and employers that this tax demand will unlikely have any material impact on financial operations or other day-to-day activities of the company.