Hindustan Unilever has obtained a tax discover amounting Rs 962.75 crore, together with an curiosity of Rs 329.33 crore from the Workplace of the Deputy Commissioner of Earnings Tax, Mumbai. The corporate in a submitting on Monday stated that that they had obtained the order on August 23.
The tax demand, HUL said, has been raised on account of non-deduction of TDS as per provisions of Earnings Tax Act, 1961 whereas making remittance of Rs 3,045 crore for fee in direction of acquisition of India Well being Meals Drink (HFD) mental property rights (IPR) from GlaxoSmithKline ‘GSK’ Group entities.
HUL, within the submitting, added that there can be no vital monetary implications at this stage as the corporate has a robust case on deserves to enchantment towards the demand. It stated that it will undertake mandatory steps.
“There shouldn’t be any vital monetary implications at this stage pursuant to the Demand Order for the explanations under: The Firm has robust case on deserves on tax not withheld, foundation accessible judicial precedents, which have held that the situs of an intangible asset is linked to the situs of the proprietor of the intangible asset and therefore, revenue arising on sale of such intangible property should not topic to tax in India,” it said.
In the meantime, HUL shares had been buying and selling flat at Rs 2,819 in early offers on BSE at this time. Market cap of the FMCG agency stood at Rs 6.61 lakh crore.
“Because the Demand Order is appealable, the Firm might be taking mandatory actions in accordance with the legislation prevailing in India. Additional, the Firm has an indemnification proper to recuperate the demand raised by the Earnings Tax division and can undertake mandatory steps in furtherance of the identical,” stated HUL within the submitting.
The order was obtained on Friday, and was filed with the exchanges on the subsequent working day, which was Monday.
