Tata Motors Ltd has announced that it received a tax demand of almost Rs. 25 crore, which includes penalty and interest, from the authorities.
The demand is due to short payment of tax and excess availment of credit. The Sales Tax Officer Class II / AVTO Ward 204, Zone 11, Delhi passed an order on April 30, 2024, which was received by the company on May 1, 2024.
The order confirms the demand on account of short payment of tax and excess availment of credit under section 73 of the CGST/ SGST Act, 2017.
The tax amount is Rs. 14,25,68,173, with interest of Rs. 9,14,15,704 and a penalty of Rs. 1,42,56,815. The company stated that it is reviewing the order and will exercise the right to file an appeal.
Tata Motors also added that this order will not have any material impact on the financial and operational activities of the company.