Two-wheeler manufacturer Hero MotoCorp has received tax demand notices totalling ₹605 crore including interest for the assessment years 2013-14 to 2017-18 and 2019-20.
"We wish to inform that the Company has on April 3, 2024, received assessment orders/ demand notices dated March 30, 2024 pertaining to six assessment years from the Income Tax Department," the two-wheeler company says in a stock exchange filing.
"The Company has received the aforesaid orders/notices pertaining to six assessment years, amounting to a tax demand of Rs. 308.65 crore and interest thereon of Rs. 296.22 crore. This is on account of certain disallowances, for the assessment years 2013-14 to 2017-18 and 2019-20," it says.
Hero MotoCorp says it will file appeals against the orders with appellate authorities including filing of 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," India's largest motorcycle maker says.
Hero MotoCorp closed the financial year 2023-24 (April 1, 2023-March 31, 2024) with sales of 56,21,455 units of motorcycles and scooters.
The company registered a growth of 10% in the fourth quarter (Jan-Mar’24) of the fiscal year. Hero MotoCorp also registered 16% growth in its global business sales during the fiscal year. In March 2024, the company sold 490,415 units of motorcycles and scooters.
Hero MotoCorp sold more than 4,000 VIDA V1 in retail sales in the month of March. The company also expanded the presence of its emerging mobility brand VIDA to over 100 cities in the country. It has entered into a partnership with Ather Energy for an interoperable charging network, providing over 2,000 charging points across 100 cities to its customers.
Hero MotoCorp expects a double-digit revenue growth in FY25 led by gain in the 125cc segment with the launch of Xtreme 125R, ramp-up of premium motorcycle portfolio and EV market share gain on the back of new launches.
Marking a key milestone in its global business operations, Hero MotoCorp announced its strategic plan to commence operations in Europe and UK in FY25. The company also bolstered some of its key international markets such as Nepal, Costa Rica, by appointing new distributor partners in the region.
