Colgate-Palmolive receives ₹248.7 crore tax notice; check details

The stock of the multinational consumer products firm was already under focus on July 29, 2024, as the company received a tax demand notice amounting to ₹248.74 crore from the Income Tax (IT) Authority over the weekend. However, Colgate Palmolive will file an appeal challenging the said order.

Colgate Palmolive (India) informed the stock exchanges that on July 26, 2024, it received a final assessment order from the IT Authority for the assessment year (AY) 2020-21, carrying a demand amounting to ₹248.74 crore. The said amount comprises interest, which alone adds up to ₹79.63 crore.

The tax demand relates mainly to Transfer pricing issues. These issues are standard disallowances in line with those in prior assessment years. Colgate Palmolive (India) has already filed an appeal against these disallowances, too.

In response to the Income Tax Authority’s tax demand notice of nearly ₹249 crore, the FMCG major has stated that it will file an appeal before the Income Tax Appellate Tribunal against the said order.

The company has also noted that the notice has had no impact on its financial operations or any other related activities.

Further, the Board of Directors of Colgate Palmolive (India) will conduct a meeting today on Monday, to approve the company’s financial results for the quarter that ended June 30, 2024.

The mid-cap stock has performed well over the short term and year-to-date (YTD), securing a healthy double-digit uptick of 27% so far this year. The FMCG company’s shares have given returns of almost 15% to its investors in three months and about 13% in a month’s period.