Income Tax tribunal orders ₹13,000-crore tax relief to Maruti Suzuki

Maruti Suzuki India informed the exchanges on Thursday that the Income Tax Appellate Tribunal (ITAT) had ruled largely in its favour in tax matters covering eight financial years, from FY2013-14 to FY2019-20 and FY2021-22. The order is expected to have a positive tax impact, including interest, of approximately ₹13,000 crore, the automaker said in an exchange filing.

The company expects to reduce its contingent liability by about ₹6,300 crore, primarily through a reduction in the interest component.

Maruti Suzuki will file an application before the jurisdictional assessing officer to give effect to the order, it said.

“There is no major impact on financials, operations or other activities of the Company due to this Income Tax Appellate Tribunal Order,” the company said.

In Q1 FY27, Maruti Suzuki reported a 36% year-on-year rise in revenue from operations to ₹52,456 crore, while standalone net profit declined 11% to ₹3,352 crore. Operating EBITDA margin narrowed to 8.22% from 10.4% a year earlier, weighed down by higher commodity, energy, logistics and raw material costs.

On Thursday, Maruti Suzuki shares closed 2.4% higher at ₹11,445 on the NSE.