MUMBAI: Hindustan Unilever has received a tax demand of Rs 962.7 crore from the Income Tax department, including interest of Rs 329.3 crore. The notice arises from the non-deduction of tax deducted at source on a remittance of Rs 3,045 crore for acquiring the intellectual property rights of India health food drink from the GlaxoSmithKline Group entities, the company said in a stock exchange filing late Monday night.
In Dec 2018, HUL announced the merger of GSK Consumer Healthcare with the company.Under the terms of the merger deal, which was completed in 2020, HUL acquired the Horlicks brand for India from GSK for Rs 3,045 crore. Additionally, GSKCH’s other brands like Boost, Maltova and Viva also moved to HUL’s product portfolio.
HUL said that it will appeal the order. “Further, the company has an indemnification right to recover the demand raised by the Income Tax department and will undertake necessary steps in furtherance of the same,” HUL said. It said that the tax demand will not have any significant financial implications at this stage.
In Dec 2018, HUL announced the merger of GSK Consumer Healthcare with the company.Under the terms of the merger deal, which was completed in 2020, HUL acquired the Horlicks brand for India from GSK for Rs 3,045 crore. Additionally, GSKCH’s other brands like Boost, Maltova and Viva also moved to HUL’s product portfolio.
HUL said that it will appeal the order. “Further, the company has an indemnification right to recover the demand raised by the Income Tax department and will undertake necessary steps in furtherance of the same,” HUL said. It said that the tax demand will not have any significant financial implications at this stage.
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