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Colgate-Palmolive India receives ₹267.64 crore tax demand, plans appeal
The FMCG major said the tax demand relates mainly to inter-company pricing adjustments and expense disallowances, and will be contested before the appellate tribunal.
Colgate-Palmolive (India) has received a tax demand order of ₹267.64 crore for the financial year 2021–22 from Indian tax authorities, the company said in a regulatory filing on Friday, adding that it plans to challenge the order before the appropriate appellate forum.
The Indian arm of the US-based consumer goods multinational said the demand primarily stems from adjustments related to inter-company pricing and the disallowance of certain expenses. The company did not provide further details on the specific issues raised by the tax regulator.
Colgate-Palmolive India clarified that it intends to file an appeal before the tax tribunal and stressed that the demand order would not have any material impact on its business operations, financial position, or ongoing activities.
The development comes at a time when the toothpaste maker has reported pressure on its financial performance. The company had earlier disclosed a 17% year-on-year decline in net profit for the September quarter, reflecting challenges in demand conditions and cost pressures.
Industry executives have been increasingly flagging concerns around tax certainty in India, urging the government to address ambiguities in dispute resolution mechanisms. Corporates have warned that unclear anti-avoidance rules, unresolved treaty interpretations, and lingering uncertainty around post-equalisation levy issues could trigger fresh tax disputes and weigh on ease of doing business.
Colgate-Palmolive India is one of the country’s leading oral care and personal hygiene companies, with a long-standing manufacturing and distribution presence across India. Tax disputes related to transfer pricing and expense disallowances are common among multinational firms operating in India, with many cases often contested through multiple layers of appellate review before final resolution.
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