An indirect subsidiary of Samvardhana Motherson, Motherson SAS Automotive Modules and Services Argentina S.A., has received a penalty from the Argentine tax authority (ARCA). The penalty, amounting to ARS 56,436,886.20 (approximately INR 3,665,406), relates to tax credits claimed from 2019-2023. The penalty occurred before Samvardhana Motherson’s acquisition of the parent company. The company intends to discuss with the seller under an indemnity agreement.
Penalty Imposed on Argentine Subsidiary
An indirect, wholly-owned subsidiary of Samvardhana Motherson International Limited, named Motherson SAS Automotive Modules and Services Argentina S.A. (“MSAS Argentina”), has received a penalty from the Argentine tax authority, Agencia de Recaudacion de Control Aduanero (ARCA). This was disclosed on October 16, 2025.
Details of the Penalty
The tax authority imposed the penalty as MSAS Argentina inadvertently claimed certain tax credits or deductions related to VAT input or expenses from 2019 to 2023 against invoices. These invoices were from a supplier later found to be non-compliant with ARCA regulations. The penalty totals ARS 56,436,886.20, which is equivalent to approximately INR 3,665,406.
Background and Company Response
The penalty pertains to a period before Samvardhana Motherson acquired the business, which occurred on July 31, 2023, through the acquisition of SAS Autosystemtechnik GmbH Germany. The company states the penalty will not materially impact the finances or operations of either MSAS Argentina or the broader Samvardhana Motherson International. The company plans to discuss the matter with the seller of the business under an existing indemnity provision.
Source: BSE
