Hindustan Unilever pays Rs 192.55 crore in tax demand dispute
HUL settled 20% of a total outstanding demand of Rs 962.75 crore in the tax dispute issue linked to the acquisition of intellectual property rights for India HFD from entities within the GSK Group.
ADVERTISEMENT
Hindustan Unilever Ltd (HUL) announced on December 2 that it has adhered to an order from the Income Tax assessing officer, settling Rs 192.55 crore — 20% of the total Rs 962.75 crore demand. The dispute centers on a tax deduction at source (TDS) issue linked to a Rs 3,045-crore payment made for the acquisition of intellectual property rights for India HFD from entities within the GlaxoSmithKline (GSK) Group.
"The company has made a payment of Rs192.55 crore on 28th November 2024 in compliance with the aforesaid direction. The payment was made pursuant to receipt of aforesaid amount under an indemnification claim as per the relevant Sale and Purchase Agreement and hence, doesn’t have any financial implications at this stage," Hindustan Unilever said in a regulatory filing.
The demand, which includes Rs 329.33 crore in interest, stems from alleged non-deduction of TDS during the remittance under the provisions of the Income Tax Act, 1961. HUL had appealed the assessment order with the Commissioner of Income-tax (Appeals), Mumbai, and sought a stay on the demand and penalty proceedings.
"...this is to inform that in view of the submission made by the Company, the Assessing Officer vide its Order dated 6th November 2024, directed the Company to make payment of 20 per cent of the total outstanding demand of Rs 962.75 crores on or before 30th November 2024 and kept the recovery proceedings in abeyance for the balance amount of the demand," HUL said.
