Eicher Motors, the leading Indian automotive manufacturer is facing a challenging situation with tax authorities. The company disclosed to stock exchanges a demand for nearly ₹130 crore, including penalties, from various tax offices across India.
What Happened? This demand arises from discrepancies in the company’s 2017-18 financial year records, primarily concerning GST credit mismatches and turnover differences in GST filings. Additionally, the company is accused of not reversing input tax credit on returned materials.
Eicher Motors, standing firm, believes these demands are unjustified. The company is currently evaluating its options, including the possibility of appealing against the orders. They reassure stakeholders, stating that this issue is unlikely to have a significant impact on the company’s financials, operations, or other activities.
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With monthly sales data for December, due to come in later in the day, it would be interesting to see if a stellar showing from the company’s sales team could offset the dent this news has had on the Eicher’s stock price.
Price Action: Eicher Motors Ltd. shares were trading 1.56% lower at ₹4,079.00 after opening at ₹4,145.00 on Monday.
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