Samvardhana Motherson International Limited’s indirect wholly owned subsidiary, Motherson SAS Automotive Services USA Inc., has been penalised by the State of California Franchise Tax Board (SCFTB). The penalty, amounting to $28,518, is equivalent to approximately ₹26,62,742.
The penalty was imposed due to issues with the classification of sales and/or vendor in the income and tax computation return filed for the year ended March 31, 2025. Specifically, certain sales were categorised as foreign, which impacted the calculation of eligible tax for Motherson SAS.
The directive from SCFTB was received on April 14, 2026. Despite the penalty, Samvardhana Motherson International Limited has stated that there is no material impact on the financials, operations, or other activities of Motherson SAS or the parent company.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).