Samvardhana Motherson Subsidiary Motherson SAS Imposed Penalty by California Tax Board
Samvardhana Motherson International Limited reported that its indirect wholly owned subsidiary, Motherson SAS Automotive Services USA Inc. (Motherson SAS), was subjected to a penalty by the State of California Franchise Tax Board (SCFTB).The penalty arises from the review of the Income and Tax computation return filed for the year ended March 31, 2025. The SCFTB determined that the penalty was due to the classification of sales and/or vendor details. Specifically, the authority noted that certain sales were categorized as foreign, which consequently impacted the calculation of eligible tax for Motherson SAS.
The directive or order regarding the penalty was received on April 14, 2026.
According to the details provided, the penalty imposed by the SCFTB amounts to $ 28,518 (USD Twenty- Eight Thousand Five Hundred Eighteen only). This sum is reported as being equivalent to INR 26,62,742 (Rupees Twenty-Six Lakh Sixty-Two Thousand Seven Hundred Forty-Two only).
The financial details of the penalty are outlined below:
| Authority | Nature of Penalty | Penalty Amount (USD) | Penalty Amount (INR) |
|---|---|---|---|
| State of California Franchise Tax Board (SCFTB) | Penalty related to Income and Tax computation return (for year ended March 31, 2025) due to sale/vendor classification | $ 28,518 | INR 26,62,742 |
Samvardhana Motherson International Limited stated that the penalty is not expected to have a material impact on the financials, operations, or other activities of Motherson SAS and/or the parent company.
MOTHERSON Stock Price Movement
Today, Samvardhana Motherson International Limited shares rallied, closing at ₹123.55 after gaining 3.59% on a strong day. This positive momentum occurred amid significant investor interest, with the stock trading on a massive volume of 24.89 million shares.Source:
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