Bajaj Auto Gets ₹49.82 Lakh Tax Penalty Demand

Bajaj Auto Limited (BSE: 532977, NSE: BAJAJ-AUTO) has announced that it received a penalty order from the Deputy Commissioner of State Tax, Rudrapur, Uttarakhand. The order, dated 20 May 2025 at 2:43 p.m., imposes a penalty of ₹49,82,892 under Section 58(1)(XI) of the Uttarakhand VAT Act, 2005.

Details Of The Penalty

The penalty has been imposed on the grounds of allegedly claiming input tax credit (ITC) on ineligible items during the financial years 2015–16 and 2016–17. The action comes under Section 58(1) (XI) of the VAT Act, which deals with violations related to ineligible tax credit claims.

Company’s Response

Bajaj Auto has clarified that the disputed ITC had already been reversed by the company before the completion of the regular assessment. Additionally, the company pointed out that the tax proceedings were initiated beyond the prescribed statutory time limit. Based on this, Bajaj Auto has expressed confidence in its legal position and plans to challenge the penalty through appropriate legal channels.

In its official filing, the company stated, “This order does not have any major financial implications on the Company.”

Assessment Of Impact

Although the penalty amount may appear significant, Bajaj Auto has confirmed that the order will not have any material impact on its financial or operational activities. The company’s legal and compliance teams are actively addressing the issue and remain confident in their legal recourse.

While the development underscores regulatory attention to past tax credit claims, it is not expected to affect the company’s business performance or financial outlook in any meaningful way.

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