Tata Motors paid Rs 38,892 crore in total global tax and other contributions for FY25, marking a marginal decline from Rs 39,344 crore in FY24, according to its inaugural Tax Transparency Report 2024–25.
The report indicates a stable 9% tax-to-revenue ratio for both financial years. Direct contributions including corporate taxes and duties fell to Rs 25,766 crore (66.25% of the total) in FY25 from Rs 29,199 crore (74.21%) in FY24. Meanwhile, indirect contributions such as withholding and payroll taxes rose to Rs 12,189 crore (31.34%) from Rs 9,284 crore (23.60%). Other contributions, covering social security and pension fund payments, increased slightly to Rs 937 crore.
Segment-wise, Jaguar Land Rover (JLR) contributed Rs 15,379 crore in direct taxes in FY25, down from Rs 19,345 crore in FY24. Tata Commercial and Passenger Vehicles reported Rs 9,541 crore in direct contributions, while other businesses contributed Rs 846 crore. The decline in JLR’s contribution reflects evolving operational dynamics and market conditions.
Tata Motors reaffirmed its adherence to the Tata Code of Conduct, explicitly rejecting artificial tax structures and offshore tax havens. The Tax Transparency Report underscores the company's compliance with the OECD’s BEPS 1.0 and 2.0 frameworks, which aim to curb base erosion and profit shifting. It also highlights the adoption of advanced pricing agreements (APAs) to ensure arm’s-length pricing in intercompany transactions. Automation via ERP systems and a centralised tax governance framework were noted as key strategies for managing tax-related risks.
The company reiterated its commitment to complying with tax laws and regulations in every country where it operates, emphasising zero tolerance for non-compliance. It noted that all tax decisions are made based on locally applicable laws and validated by experts when necessary. “Business decisions are driven by substance and never based on engineered tax planning,” it stated.
“This report reaffirms our commitment to ethical practices and operational sustainability,” the company added. “Transparency in tax matters is integral to building stakeholder trust and supporting national economies where we operate.”
On international taxation, Tata Motors highlighted its principle of business unity, ensuring its global tax affairs remain aligned with the substance of its business operations and current international tax standards. It emphasised that all its subsidiaries are located in jurisdictions where the company has significant physical and economic presence. “We claim reliefs, credits, incentives, and exemptions that are legislated in the countries in which we operate,” it said.