Company: ZCARW
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076590
Chunk: 161

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 161
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 tax in diverse jurisdictions and have structured our business to reduce our effective tax rate. The taxing authorities
of the jurisdictions in which we operate have in the past, and may in the future, examine or challenge our methodologies for valuing developed
technology, which could increase our worldwide effective tax rate and harm our financial position and operating results. Furthermore,
our future income taxes could be adversely affected by earnings being lower than anticipated in jurisdictions that have lower statutory
tax rates and higher than anticipated in jurisdictions that have higher statutory tax rates, changes in the valuation of our deferred
tax assets and liabilities, or changes in tax laws, regulations, or accounting principles. We are subject to regular review and audit
by the tax authorities in the jurisdictions where we operate and currently face numerous income and other tax claims pending appeals before
higher authorities in India. Any adverse outcome of such appeals or an adverse interpretation from the tax authorities on the tax compliances
and tax rates applicable to our car sharing business could have an adverse effect on our financial position and operating results. In
addition, the determination of our worldwide provision for income taxes and other tax liabilities requires significant judgment by our
management, and we have engaged in many transactions for which the ultimate tax determination remains uncertain. The ultimate tax outcome
may differ from the amounts recorded in our financial statements and may materially affect our financial results in the period or periods
for which such determination is made. Our tax positions or tax returns are subject to change, and therefore we cannot accurately predict
whether we may incur material additional tax liabilities in the future, which could impact our financial position.

Our business is subject to extensive government
regulation and oversight relating to the provision of payment and financial services. 

The jurisdictions in which
we operate and jurisdictions we may enter may have laws that govern payment and financial services activities. These laws govern, among
other things, money transmission, prepaid access instruments, electronic funds transfers, anti-money laundering, counter-terrorist financing,
banking, systemic integrity risk assessments, and cyber-security of payment processes. Our business operations, including our payments
to Hosts and Guests, may not always comply with these financial laws and regulations. Regulators may determine that certain aspects of
our business are subject to these laws and could require us to obtain licenses to continue to operate in India. We have evaluated and
will continue to critically evaluate our options for seeking applicable licenses and approvals in the jurisdictions where we operate to
optimize our payment solutions and support the future growth of our business. Laws related to