Colgate-Palmolive receives over ₹200 crore tax notice

The Colgate Palmolive company has received a tax demand notice of ₹248.74 crore from the Income Tax (IT) authority over the weekend.

The company has said it will file an appeal challenging the notice before the Income Tax Appellate Tribunal.
On July 26, 2024, the Colgate Palmolive (India) 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 includes interest of ₹79.63 crore.

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

The FMCG major has also said the notice has had no impact on its financial operations or any other related activities. Despite a tax demand notice issued to the Colgate-Palmolive, the shares reached a record new 52-week high of ₹3,271.95 per piece on the National Stock Exchange (NSE) on July 29 morning.

The mid-cap stock has shown strong short-term and year-to-date (YTD) performance, with a notable 27% increase so far this year. The FMCG company's shares have delivered nearly 15% returns to investors over the past three months and about 13% over the past month.