Hyundai Motor India Gets Rs 5 Crore Demand From Maharashtra Tax Authority

Tax Notice To Hyundai: Hyundai Motor India Ltd on Tuesday said it has received a show cause notice with demand of over Rs 5 crore, including interest, from Maharashtra State Tax Authority for alleged excess input tax credit claim.

In a regulatory filing, Hyundai Motor India Ltd (HMIL) said on Monday, November 25, it received show cause notice from Maharashtra State Tax Authority alleging "excess ITC claimed" is not confirmed as per norms and in RCM (reverse charge mechanism) tax paid by the company.

"The total demand amount mentioned in the show cause notice is Rs 2.741 crore towards tax and Rs 2.279 crore towards interest," it added.

HMIL said it will be filing a reply to the show cause notice before the adjudicating authority within the prescribed timelines.

"There is no impact on financial, operation or other activities of the company due to this show cause notice," it added.

This development comes shortly after Hyundai Motors India Limited brought the biggest IPO in India. Hyundai Motors raised Rs 27,870 crore from its IPO. As of 02:01 pm, the shares of Hyundai Motors India were trading 28.65 points or 1.55 per cent up higher at Rs 1,882 apiece.

The auto manufacturer has recently announced that it will set up two renewable energy plants at its vehicle manufacturing unit in Tamil Nadu. The company has signed a power purchase and shareholder agreement with Fourth Partner Energy Ltd (FPEL) to set up a 75 MW solar plant and a 43 MW wind power plant to cater to its renewable energy requirements.

HMIL had said that its move is aimed at enhancing its renewable energy portfolio and transitioning to 100 per cent renewable electricity across its manufacturing operations by 2025. Currently, the company fulfills 63 per cent of its energy requirements using renewable sources as of June 2024 and aims to reach the 100 per cent mark ahead of most automakers in the country.