Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 145

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1
Chunk 145
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 damages made to the vehicles
or any mechanical issues in the vehicle will be the responsibility of either the host or the customer. While uncertainties are inherent
in the final outcome of these matters, the Company believes that the disposition of these proceedings will not have a material adverse
effect on the Company’s financial position, results of operations or cash flows.

78

(B) The Company has received various orders and show cause notices
from Indian indirect tax authorities relating to disputes on input tax credits, service tax liabilities, GST dues, and taxability of
car rental revenue for periods between 2014 and 2023, totaling $9,514,651 (March 31, 2024: $7,984,418). These disputes include disallowance
of input credits, service tax liabilities on booking fees and penalty charges, disputes on goods and service tax input availed, and GST
demands on gross booking value. The Company has taken necessary steps, including filing appeals, submissions, and deposits, and is awaiting
further communication from the authorities. In relation to the GST demands on gross booking value, the Company has filed a writ petition
with various authorities challenging the order. Based on the submissions provided and documents available, management believes that no
significant outflow is expected, and therefore, no provision has been recorded as of March 31, 2025, and March 31, 2024.

(C) In February 2023, a former employee of Zoomcar India instituted
a suit before the City Civil and Sessions Judge at Mayo Hall, Bengaluru against Zoomcar India, Zoomcar, Inc. and Zoomcar Holdings, Inc.
(formerly IOAC) challenging his termination, claiming damages amounting to $397,023 and claiming that 100,000 options to purchase shares
of Zoomcar, Inc. have vested. On March 3, 2023, the City Civil and Sessions Judge at Mayo Hall, Bengaluru, issued an interim injunction
to restrain each of Zoomcar, Inc. and Zoomcar Holdings, Inc. from “alienating or dealing” the 100,000 shares of Zoomcar,
Inc. claimed by the former employee while the suit is pending. Zoomcar believes that such claims are baseless and is attempting to have
the interim order vacated. In addition, Zoomcar India filed an application in the former employee’s suit, seeking that Zoomcar
Holdings, Inc. be deleted from the array of parties in the suit.

(D) On November