Colgate India Faces Rs 267 Crore Tax Demand from Authorities, ETCFO
Colgate-Palmolive (India) said on Friday it has received a tax demand order worth Rs 267.64 crore for the fiscal 2021-22 year from the country’s tax regulator.
The Indian arm of the U.S. multinational consumer firm said the demand primarily relates to adjustments around inter-company pricing and the disallowance of some expenses, but did not provide any further details.
The toothpaste maker added it will be filing an appeal to the tax tribunal and added that the “demand order does not impact its operations, financials, or any other activities” of the firm.
It had reported a 17% year-on-year decline in net profit for the September quarter.
Industry is currently pressing the government to fix gaps in tax certainty and dispute resolution, warning that unclear anti-avoidance rules, unresolved treaty issues, and post-equalisation levy uncertainty could spur fresh direct tax disputes and weigh on the ease of doing business.
