Maruti Suzuki India Ltd received a draft assessment order worth Rs 5,786 crore from the income tax authorities on Monday, the automaker informed the exchanges.
The notice pertains to the fiscal year 2022-23, linked to certain additions or disallowances concerning returned income, which is the income disclosed on the income tax return.
"The Company has received a Draft Assessment Order for the FY 2022 – 23 wherein certain additions / disallowances amounting to Rs 57,864 million with respect to returned income (the income disclosed by the Company in its Income Tax return) has been proposed," the filing issued on Tuesday reads.
The carmaker plans to file its objections before the Dispute Resolution Panel, while assuring that there is no impact on financial, operational, or other activities of the company due to the order.
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Delay in Shipments
The development comes amid tensions in the Middle East with several major Indian automakers deferring shipments to the region and North Africa, Bloomberg reported, citing people familiar with the matter, with disruptions in sea routes and rising freight costs.
With the ongoing conflict in the Middle East, companies such as Tata Motors Ltd., Maruti Suzuki India Ltd., Hyundai Motor India Ltd., and the local unit of Volkswagen AG are delaying dispatches of cars and commercial vehicles, the report said. This measure seeks to avoid emergency shipping surcharges of up to $2,000 per container and war-risk insurance premiums as container availability becomes strained.
The Hormuz Strait, a narrow waterway in the Persian Gulf and a vital connectivity point for global trade, does not remain an effective route after Iran warned that any vessel attempting passage risks being attacked. A route through South Africa would significantly inflate shipping costs for automakers.
On March 1, Maruti Suzuki, in a media call, said that the Middle East comprised for around 12.5% of its exports in the year ended March 31.
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