Company: ZCARW
Filing Date: 2025-06-30
Form Type: 10-K
Source: 0001213900-25-059675
Chunk: 1441

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-06-30
Form: 10-K
Item: Item 4
Chunk 1441
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 as
liability amounted to $4,503,122 and $4,565,949 as at March 31, 2025 and March 31, 2024, respectively. The claims made by the customers
against the Company includes claims that have been made for amounts charged to customers by the Company as damages for improper use of
vehicles and/or physical damages made to vehicles during an active trip ; or claims made by customers for unavailability of the booked
vehicle or for any mechanical default in the booked vehicle ; or claims against any similar issue faced by either the host or the customer.
Under the erstwhile business model of the Company , the Company had procured third-party insurance policies for fleet under its management
which indemnifies against personal death and/or injuries suffered either by the customer or third-parties during the use of its vehicles.
Based on the insurance coverage, the Company is confident that liability, if any, arising from the claims under the previous business
model will be covered by the insurance. Further, under the current business model of the Company, wherein the Company acts only as a
facilitator, any issues arising from breach of any terms including improper use of vehicles and/or physical 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.

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(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