Hyundai Motor India Faces Tax Credit Controversy

Hyundai Motor India Ltd has received a show cause notice from the Maharashtra State Tax Authority for an alleged excess input tax credit claim totaling over Rs 5 crore, including interest. The company plans to respond within the stipulated timeframe and asserts no significant impact on its operations.

Hyundai Motor India Ltd (HMIL) is embroiled in a tax controversy following a notice from the Maharashtra State Tax Authority. The notice demands over Rs 5 crore, citing alleged excess claims in input tax credits.

According to HMIL's regulatory filing, the contentious issue involves Rs 2.741 crore towards tax and Rs 2.279 crore as interest. This demand arose from what the authority claims is a non-compliance of norms tied to the Reverse Charge Mechanism (RCM) tax paid by the company.

Despite the serious allegations, HMIL maintains that the notice will not affect its financial status or operational activities. The company intends to submit a reply to the authorities promptly, adhering to the prescribed deadlines.