Income Tax Department has sent a notice to Hindustan Unilever
Hindustan Unilever Limited, the country’s leading FMGC company that manufactures daily use products, has suffered a major setback. In fact, HUL has received a tax notice from the Income Tax Department. Hindustan Unilever has received a tax notice of Rs 962.75 crore from the Income Tax Department. This also includes interest of Rs 329.3 crore. In such a situation, let us know why the country’s leading FMCG company has received the notice.
Why did you receive the notice?
According to Monday’s exchange filing, the notice to HUL said that this amount was levied on non-deduction of TDS. The tax demand was sent for non-payment of TDS and at the same time a remittance of Rs 3,045 crore was made for payments related to the acquisition of India’s HFD IPR from GSK Group entities. In 2018, Hindustan Unilever had acquired the Horlicks brand from GSK for Rs 3,045 crore. This includes India, Bangladesh and over 20 countries. Through this acquisition, other brands of GSKCH like Boost, Maltova and Viva also joined HUL’s portfolio.
HUL to appeal the notice
According to the company, there are many such examples in the past as well where it was said that the location of origin of an intangible asset is linked to the location of its owner. Therefore, income from the sale of such intangible assets cannot be taxed in India.
The company will appeal this order. The company said it is entitled to recover the claim made by the Income Tax Department.
share status
Today, Hindustan Unilever shares have seen a fall after the company received the notice. The company’s shares are trading today at the level of Rs 2,777.25 with a drop of more than one and a half percent. Today, the company’s shares opened at the level of Rs 2,806. Since then, there has been a fall in the shares.
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I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,
