Hindustan Unilever (HUL) has received a tax notice for Rs 962.75 crore, including Rs 329.33 crore in interest, from the Mumbai Income Tax Department. The notice, received on August 23, pertains to the non-deduction of TDS on a Rs 3,045 crore remittance for acquiring India Health Food Drink (HFD) intellectual property rights from GlaxoSmithKline (GSK) Group entities.
HUL stated that the demand is based on provisions under the Income Tax Act, 1961. The company believes it has a strong case for appeal and does not anticipate significant financial implications at this stage. HUL plans to challenge the order and exercise its indemnification rights to recover the tax demand.
The company’s shares were trading flat at Rs 2,819 on the BSE, with a market capitalization of Rs 6.61 lakh crore. HUL will proceed with necessary legal actions in response to the demand.
