Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 371

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 1A
Chunk 371
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 currencies, and fluctuations in currency exchange rates could have a significant impact on our results
of operations, financial condition and cash flows. Increased currency volatility, particularly in the Indian Rupee, could also positively
or negatively impact our foreign-currency-denominated costs, assets and liabilities. In addition, any devaluation of the Rupee relative
to other foreign currencies could increase our operating expenses, adversely affecting our results of operations. Any of these factors
could adversely affect our financial condition and results of operations in the future.

The effective tax rates governing car rental
and car subscription in India could change. 

The tax environment continues
to evolve in India on a routine basis and remains relatively fluid compared to other more mature markets. The indirect tax rates associated
with the Goods and Services Tax (GST) have changed on multiple occasions since the GST’s introduction in 2017. Any further increase
in these indirect tax rates could result in a reduction in the Company’s operating cash flow, which could impair our future profitability.

We may have exposure to materially greater
than anticipated tax liabilities. 

The tax laws applicable
to our business activities are subject to uncertainty and can be varied in the relevant jurisdictions. Like many other multinational
companies, we are subject to 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