Maruti Suzuki hit with ₹5,700 crore tax order
What's the story
Maruti Suzuki has received a Draft Assessment Order from the Income Tax Authority for FY 2022-23. The order proposes additions/disallowances of ₹5,786 crore. In response to this development, the automaker plans to file objections before the Dispute Resolution Panel. Despite the notice, Maruti Suzuki has assured that it won't affect its financial or operational activities.
Company statement
Notice will not affect financial or operational activities
In a regulatory filing, Maruti Suzuki said, "The Company has received a Draft Assessment Order for the FY 2022 - 23 wherein certain additions/disallowances amounting to ₹57,864 million with respect to returned income (the income disclosed by the Company in its Income Tax return) have been proposed." The company further clarified that this notice will not affect its financial or operational activities.
Market reaction
Shares rise by 1.82%
Despite the news of the Draft Assessment Order, shares of Maruti Suzuki India Limited (MSIL) were trading at ₹12,986.00 per scrip after a 1.82% hike. This indicates that investors are not overly concerned about the proposed additions/disallowances in the company's income tax return.