Tax authorities are investigating Hero Motocorp over links to vendor
What's the story
Indian tax authorities are investigating motorcycle maker Hero MotoCorp's relationship with vendor Salt Experiences over a suspected false expenditure of about Rs. 91 crore. The Directorate General of Goods and Services Tax Intelligence (DGGI) is conducting the probe, which is being monitored by the Ministry of Corporate Affairs (MCA) and the Enforcement Directorate (ED).
What Next?
Hero spokesperson denied the investigation
Hero MotoCorp allegedly received a tax credit based on fake spending, leading to suspected tax evasion of about Rs. 16 crore. A spokesperson for Hero MotoCorp said "there is no ongoing investigation" against the company. Salt Experiences paid Rs. 12 crore to the DGGI related to the alleged tax evasion, sources told Reuters. The investigation was ongoing, per the new agency.
Details
ED conducted searches at 12 premises last week
Additionally, the MCA is investigating whether Hero MotoCorp controls Salt Experiences in a case related to alleged diversion of funds. Previously, the ED conducted searches at 12 premises owned by Hero MotoCorp and its founding shareholder Pawan Munjal last week, seizing Rs. 54 crore in assets. At the time, Hero Motocorp said it didn't receive any communication from the government.