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Recently, one of the FMCG company giants of India, Hindustan Unilever Limited or HUL disclosed that they received a hefty tax demand, amounting to Rs 962.75 crore, including Rs 329. 33 crore in interest. This notice applies to non-deduction of tax deducted at source (TDS) arising from a substantial transaction relating to the purchase of IPRs from the GSK Group. The controversy is about a payment of Rs 3,045 crore relating to the acquisition/merger of GSK's Indian brands namely Horlicks, Boos
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FAQ :
Hindustan Unilever has been issued a tax demand of Rs 962.75 crore, which includes Rs 329.33 crore in interest.
The tax demand is due to the alleged non-deduction of tax at source (TDS) on a payment made for the acquisition of intellectual property rights (IPRs) from the GSK Group.
The deal involved the acquisition of GSK's Indian brands, including Horlicks, Boost, Maltova, and Viva.
HUL believes the tax demand is not expected to have major financial repercussions and plans to challenge it, citing judicial precedents and an 'indemnification right'.
HUL intends to appeal the tax notice and is confident in its legal position, suggesting it will not pay the demand without further legal proceedings.
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