Maruti Suzuki India (MSIL) on Tuesday said it has received a Draft Assessment Order from the income tax department involving addition/disallowance for an amount of ₹2,159.70 crore.
This addition/deletion related to the financial year 2019-20, for which the company had filed its income-tax return with the tax department. Put simply, this draft assessment order indicates tax department’s intention to add this ₹2,159.70 crore to the income returned by the company in its tax return for 2019-20.
A draft assessment order is intended to invite the assessee’s objection or acceptance to the income-tax department’s move to add/disallow certain amount for income tax computation purposes.
“The company will file its objections before the Dispute Resolution Panel. There is no impact on financial, operation or other activities of the company due to this draft Assessment Order,” MSIL said in a regulatory filing.
A Draft Assessment order is issued by the Income Tax Authority after the assessment proceedings are completed against a firm including details such as the total income or loss, tax payable or refundable, and other key details related to the period for which the proceedings were undertaken by the assessing officer.
MSIL had also received a show-cause notice recently from the GST Administration for the period between July 2017 and August 2022 in a matter of tax liability under a reverse-charge basis on certain services, proposing to demand interest and impose penalty, besides appropriating tax already paid amounting to Rs.139 crore.
Meanwhile, the company on Tuesday also reported its total production in September, which declined 1.40 per cent year on year (YoY) to 1,74,978 units compared with 1,77,468 units in the corresponding month last year.
While the production of utility vehicles and vans increased during the month YoY, its mini segment (Alto, S-Presso) and compact segment (like Baleno, Celerio, Dzire, Swift and WagonR) declined YoY.
The production of mini cars declined 70 per cent YoY to 10,705 units (35,887 units). Similarly, production of the compact cars declined two per cent YoY to 90,849 units (92,717 units).