Colgate-Palmolive India faces Rs 268 Cr tax demand, plans appeal

MUMBAI: Colgate-Palmolive (India) has found itself in a tax tussle, with the Income Tax Department raising a demand of Rs 267.64 crore for the financial year 2021–22. The maker of some of India’s most familiar bathroom staples, however, is keeping its smile firmly in place.

The company said it has received an assessment order along with a notice of demand from the tax authorities. The bulk of the claim stems from transfer pricing adjustments and the disallowance of certain expenses.

The order was received on December 24, with Christmas Day being a public holiday, prompting the formal disclosure on December 26.

Colgate-Palmolive (India) has made it clear that the matter is far from settled. The company plans to challenge the order before the Income Tax Appellate Tribunal and remains confident about its position.

More importantly for investors and consumers alike, the company says there is no impact on its financials, operations or day-to-day business as a result of the demand.

In short, while the taxman has taken a bite, Colgate insists its balance sheet and business remain squeaky clean.