Company: ZCARW
Filing Date: 2025-05-05
Form Type: S-1
Source: 0001213900-25-039778
Chunk: 143

Company: Zoomcar Holdings, Inc.
Filing Date: 2025-05-05
Form: S-1
Chunk 143
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 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 $15,934,836 (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 December 31, 2024, 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 $396,457 and claiming that 50 options (100,000 options prior to First and Second Reverse Stock Split) 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 50 shares (100,000 shares prior to First and Second Reverse Stock Split) of Zoomcar, Inc. claimed by the former employee while the suit is pending.