Colgate-Palmolive India Challenges Rs 248.74 Crore Tax Demand

Colgate-Palmolive (India) Ltd faces a tax demand of Rs 248.74 crore from the Income Tax Authority related to transfer pricing issues. The FMCG company plans to challenge the order before the appellate tribunal. The demand pertains to the financial year ending March 31, 2021, including Rs 79.63 crore interest.

Colgate-Palmolive (India) Ltd has been served with a tax demand notice of Rs 248.74 crore by the Income Tax Authority, citing transfer pricing-related issues.

The FMCG giant announced that it will contest this order before the appellate tribunal.

According to a regulatory filing, CPIL received the notice concerning the financial year ending March 31, 2021, including an interest component of Rs 79.63 crore. CPIL clarified that this demand is largely due to standard disallowances, similar to those in prior assessment years for which the company has already filed appeals.

(With inputs from agencies.)