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Maruti Suzuki will have to pay Rs. 150 crore penalty

Maruti Suzuki will have to pay Rs. 150 crore penalty
Written by Parichay Malvankar

Found guilty of evading taxes, Maruti Suzuki has been asked to pay additional excise duty of Rs. 150 crore before December 2014. The Customs Excise and Service Tax Appellate Tribunal (CESTAT) has demanded this payment out of the total demand of Rs. 800 crore before the calendar year ends.

The case involved Maruti running promotional schemes and discounts on cars during festive season and it was found that the discounts were adjusted by the company from the dealer margins. The Indian automobile giant has been found guilty of selling cars at a higher price than the actual amount on which excise duty is calculated. The Rs. 150 crore demanded is calculated from the past 5 years of sales. Balance recovery will be made once the case / appeal is closed.

Maruti however claims that they have nothing to do with the promotional schemes, and the dealers run them at their cost.

Source – Financial Express