Motherson receives IDR 14.94 billion tax penalty from Indonesia
- PT. Atsumitec Indonesia received a tax penalty of IDR 14.94 billion (INR 81.25 million)
- The fine results from disallowed royalty and SAP license fees for FY21
- Atsumitec Indonesia was acquired by Motherson in March 2025
- The penalty relates to the pre-acquisition period
- Motherson states no material impact on financials or operations
*this image is generated using AI for illustrative purposes only.
Samvardhana Motherson International Limited disclosed that its indirect subsidiary, PT. Atsumitec Indonesia, has received a tax penalty order from Indonesian authorities. The Directorate General of Taxation, Jakarta Special Regional Office, imposed the fine following a review of expenses for financial year 2021.
The penalty amounts to IDR 14.94 billion, equivalent to approximately INR 81.25 million. The order stems from the disallowance of partial royalty expenses and SAP license fees paid by Atsumitec Indonesia to its holding or group companies during FY21.
Key Details of the Order
The tax authority uploaded the order on its portal on September 10, 2026, and it was received by post on September 15, 2026. The proceedings were part of the Bukper (tax audit) process conducted by the Ministry of Finance, Indonesia.
| Particulars | Details |
|---|---|
| Authority | Directorate General of Taxation, Jakarta Special Regional Office |
| Penalty Amount | IDR 14.94 billion (INR 81.25 million) |
| Reason | Disallowance of royalty and SAP license fee expenses |
| Period Under Review | Financial Year 2021 |
| Date of Order | September 10, 2026 |
Acquisition Context
Atsumitec Indonesia became an indirect subsidiary of Samvardhana Motherson International Limited on March 26, 2025, following the acquisition of the Atsumitec Group. The company clarified that the penalty pertains to the period prior to this acquisition by the Motherson Group.
What the Numbers Show
The company stated that there is no material impact on its financials or operations due to this penalty. The fine relates to legacy expenses incurred before the entity was integrated into the Motherson Group, isolating the liability from current operational periods.
Historical Stock Returns for Samvardhana Motherson International
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.08% | -3.41% | -5.96% | +39.05% | +46.80% | +87.90% |
Will Samvardhana Motherson pursue an appeal against the Indonesian tax authority's decision to challenge the disallowance of royalty and SAP license fees?
How might this penalty influence the company's future transfer pricing strategies and inter-company expense allocations within its Indonesian operations?
Are there any pending tax audits or potential liabilities for other entities within the recently acquired Atsumitec Group for fiscal years prior to the March 2025 acquisition?
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