Colgate Palmolive (India) Faces Rs 170 Crore Transfer Pricing Order from Income Tax Authorities for International Transactions
Leading oral care products manufacturer, Colgate-Palmolive (India), has been issued a Transfer Pricing Order of Rs 170 crore by the Income Tax authorities. This order pertains to certain international transactions conducted during the financial year 2021-22. Transfer Pricing involves the pricing of cross-border transactions between affiliated entities.
Colgate Palmolive (India) Ltd has announced its intent to challenge the order and is currently awaiting the conclusion of the assessment proceedings. The company will submit its case before the Dispute Resolution Panel (DRP) for further review.
The Assessing Authority has disallowed specific international transactions undertaken by the company, which has prompted this regulatory action.
Despite the ongoing dispute, Colgate Palmolive (India) assured that the Transfer Pricing Order will not have any adverse effects on the company's financial, operational, or other activities.
The Dispute Resolution Panel (DRP) serves as an Alternative Dispute Resolution (ADR) mechanism to resolve disputes related to Transfer Pricing in international transactions.
In a separate development last week, Colgate-Palmolive India reported a substantial 22.31% increase in net profit, reaching Rs 340.05 crore for the September quarter. The company's sales also exhibited a healthy growth of 6.09%, amounting to Rs 1,462.38 crore.
CAclubindia
