Samvardhana Motherson International Limited has disclosed a penalty of IDR 14.94 Billion (approximately INR 81.25 Million) imposed on its indirect subsidiary, PT. Atsumitec Indonesia, by Indonesian tax authorities. The penalty stems from disallowed royalty and SAP license fee expenses from the financial year 2021, prior to Motherson’s acquisition of the subsidiary. The company states there is no material impact on its overall financials or operations.
Indonesian Tax Authority Imposes Penalty on Subsidiary
Samvardhana Motherson International Limited announced that its indirect subsidiary, PT. Atsumitec Indonesia, has been subjected to a penalty by the Directorate General of Taxation, Jakarta Special Regional Office, Ministry of Finance, Indonesia. The penalty amounts to IDR 14.94 Billion, which is equivalent to approximately INR 81.25 Million.
Reason for Penalty
The penalty arises from the disallowance of partial royalty expense and SAP license fee expenses. These disallowed expenses are part of payments made by PT. Atsumitec Indonesia to its holding/group company during the financial year 2021. It is important to note that PT. Atsumitec Indonesia became an indirect subsidiary of Samvardhana Motherson International Limited on March 26, 2025, and this penalty pertains to a period prior to this acquisition.
Impact on Company
Samvardhana Motherson International Limited has clarified that there is no material impact on the financials or on the operations and other activities of the Company due to this penalty. The order was uploaded on the tax portal on September 10, 2026, and the company received it by post on September 15, 2026.
Source: BSE
