Company: ZCARW
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001213900-25-014437
Chunk: 336

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 336
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96,000 entitled to him for severance pay and gratuity as per India’s Payment of Gratuity
Act, 1972. Additionally, he has claimed 210,520 stock units already existing, fully vested. The Company filed a motion to dismiss the
matter on November 27, 2024. On January 7, 2025, the Company subsequently filed the opening brief in support of the motion to dismiss
filed on November 27, 2024.

(G)On November 7, 2024, the Company received a notice from ACM
Zoomcar Convert LLC (“ACM”) regarding a breach of obligations under the Unsecured Convertible Note executed on December 28,
2023. The Company had defaulted on its payment obligations to ACM on June 25, 2024, resulting in the entire outstanding amount becoming
payable on demand. ACM has initiated litigation with the Court to recover the principal amount of $5,656,087, unpaid interest of $341,746,
and interest at the contractual rate until the date of judgment. The Company has filed an opposition to the claim and is currently awaiting
the Court’s decision.

(H)Zoomcar Holdings, Inc. files tax returns in the U.S. federal,
various state, and foreign jurisdictions. In the normal course of business, the Company is subject to examination by tax authorities.
Our major tax jurisdiction is in India. The Indian tax authority is currently examining our 2016 through 2022 tax returns.

As at December 31, 2024, tax returns for years ended March
31, 2020 and onward remain subject to examination by tax authorities in India. There are other ongoing audits in various other jurisdictions
that are not material to our financial statements.

The Company received an order for fiscal year 2015-16 in
relation to non-deduction of tax deducted at source withholding taxes on certain payments to resident payees/service providers amounting
to $125,660 (March 31, 2024: $129,027). Penalty of $125,660 has been claimed but the proceedings are kept under abeyance until the above
order is disposed off.

The Company has filed appeals against the above orders before
higher authority. 

The Company has not recognized any
uncertain tax position as at December 31, 2024 and March 31, 2024, respectively. The Company believes these orders are unlikely to be
sustained at the higher appellate authorities.