Maruti Suzuki India Receives ₹5,786 Crore Tax Demand Notice For FY23, No Impact On Operations Expected

New Delhi: Maruti Suzuki India Limited on Tuesday said it has received a draft assessment order from the Income Tax Authority involving a demand of Rs 5,786 crore. The company, however, clarified that the notice will not have any impact on its financial or operational performance. In a regulatory filing, the automaker said it will file its objections before the Dispute Resolution Panel as part of the due process.

The draft order pertains to the financial year 2022–23, where the tax authorities have proposed certain additions and disallowances amounting to Rs 57,864 million to the company’s reported income. “"The company has received a Draft Assessment Order for the FY2022–23 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 carmaker said in its exchange filing.

"The company will file its objections before the Dispute Resolution Panel," it added. Despite the development, investor sentiment remained positive. Shares of Maruti Suzuki India were trading at Rs 12,986 apiece, up 1.82 per cent during the session. The company also shared details of its recent financial performance. As per its unaudited third-quarter results, Maruti Suzuki India reported total tax expenses of Rs 10,360 million. Its sales stood at Rs 667,769 million, while profit after tax (PAT) came in at Rs 37,940 million. Operationally, the company continued to see steady growth.

In the first nine months of FY26, Maruti Suzuki sold 1,435,945 units, registering a 3.9 per cent year-on-year increase. The sales included a mix of mini cars, compact vehicles, mid-size cars and utility vehicles. Looking ahead, the company remains cautiously optimistic about demand. Senior executive Rahul Bharti had earlier indicated that the fourth quarter is expected to be positive, while adding that a clearer outlook on growth will emerge in the coming months. He had also mentioned an initial estimate of around 7 per cent sustainable volume growth for the industry, which will be reassessed later.

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