MRF said on Wednesday that the Kerala State Tax Department reduced its tax demand for financial year 2014-15 to ₹36.19 crore from ₹91.53 crore. The company got this rectification order on October 6. Now, MRF is looking at the order to decide if it will challenge the new tax amount.
MRF's tax demand for FY15 has been reduced by over 60% following a rectification order from Kerala's State Tax Department, with the company assessing its next steps.
Tyre manufacturer MRF Ltd said on Wednesday that the Deputy Commissioner, State Tax, Pala, Kerala, has passed a rectification order reducing the total tax demand for financial year 2014-15 to ₹36.19 crore from ₹91.53 crore.
The order was passed on September 30, 2026, and received by the company on October 6. The matter relates to MRF's Central Sales Tax (CST) assessment for FY15 concerning export clearances and declaration forms under sales tax.
MRF had filed a rectification application on April 29, 2021, against the matter. The application was pending before the Deputy Commissioner, Commercial Taxes, Kottayam.
The company said it is examining the order and will take an appropriate decision on whether to challenge the revised demand.
MRF June-quarter profit hit by higher costs
Earlier, on August 11, MRF reported its financial results for the June quarter.
The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell 7.5% year-on-year to ₹990.6 crore from ₹1,070.4 crore in the same quarter last year.
EBITDA margin declined to 11.77% from 13.95% a year earlier.
MRF's operating performance was pressured by higher costs, with expenditure on materials consumed rising to ₹5,824 crore from ₹4,597 crore in the year-ago quarter.
Other expenses also increased to ₹1,275 crore from ₹1,097 crore, although finance costs declined from the previous year.
Revenue from operations rose 9.6% year-on-year to ₹8,415.5 crore in the June quarter from ₹7,675.6 crore.
Shares of MRF closed at ₹1,23,100 on the NSE on October 7, down 0.79% from the previous close.