Colgate Palmolive gets transfer pricing order with income tax liability of Rs 170 crore
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Colgate Palmolive India has received a Transfer Pricing Order from the Income Tax Authority for the Assessment Year 2021-22 with income-tax liability of Rs 170 crore.
The order disallowed certain international transactions of the oral care company.
The Income Tax Authority has issued the Transfer Pricing order making adjustments on Transfer Pricing issues. The Company is awaiting completion of the Draft Assessment proceedings and post the same, an application will be made before the Dispute Resolution Panel. There is no impact on financial, operation or other activities of the Company due to this Transfer Pricing Order, the company said.
As per a research by Centrum Broking, Colgate's Q2FY24 print was in line. Domestic sales grew 6.6 per cent led by flat volumes. Management said, toothpaste category volumes remained flattish in rural markets, although improved sequentially.
"We note CLGT's growth was driven by its focused strategy of growing oral care category driven by newly launched formulation for its flagship product CDC (with Arginine technology). Recently CLGT launched new ad-campaign to drive twice a day brushing habits. Management said, there are signs of recovery in rural markets, the toothbrush category saw persistent pressure on volumes due to rising competition from Oral-B. Further, its exports sales declined steadily in Q2," the report said.
