Key Points
Indian tax authorities are investigating motorcycle maker Hero MotoCorp's relationship with a vendor suspected of reporting about 900 million rupees ($10.87 million) in false expenditure, two sources familiar with the matter told Reuters...
Based on the alleged fake spending by vendor Salt Experiences, Hero MotoCorp received a tax credit, leading to suspected tax evasion of about 160 million rupees, one of the two sources said, speaking on condition of anonymity...
A spokesperson for Hero MotoCorp said "there is no ongoing investigation against" the company on the matter, but did not elaborate further..
The investigation comes after India's Directorate of Enforcement (ED), in a separate case, last week conducted searches at 12 premises owned by Hero MotoCorp and its founding shareholder Pawan Kant Munjal, seizing $3 million in assets...
India's MCA is also investigating Hero MotoCorp's relationship with Salt Experiences in a case related to alleged diversion of funds, two government sources told Reuters in June, adding it was looking into whether the motorcycle maker controls Salt Experiences...
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Hero MotoCorp faces tax probe over links to vendor: Report
09, Aug, 23Based on the alleged fake spending by vendor Salt Experiences, Hero MotoCorp received a tax credit, leading to suspected tax evasion of about Rs 16 crore, says a report