Timken India faces significant tax demand over transfer pricing dispute

Timken India Limited announced on December 19, 2025, that the Income Tax Department has issued an order pertaining to the assessment year 2022-23. The order relates to transactions with associated enterprises within the company's distribution segment, where the IT Department disallowed methods used by Timken India to determine arm's length price, adopting alternative methodologies.

Consequently, the IT Department has calculated Timken India's income for the assessment year 2022-23 to be higher by 890m rupees compared to the income declared by the company. Following this, a demand notice has been issued, requiring Timken India to pay 747m rupees, which includes interest.

Timken India considers the order and demand notice to be erroneous, flawed, and unsustainable. The company plans to file an appeal with the appropriate authority and does not anticipate any immediate financial or monetary impact.