HUL Faces ₹1,560 Crore Tax Demand; Company Appeals Order

LAWCOURT

Overview

Hindustan Unilever Ltd received a ₹1,559.69 crore income tax assessment order for FY21-22 concerning transfer pricing and tax disallowances. The FMCG giant stated the demand will not materially affect its financials or operations and confirmed plans to appeal the order, noting no penalties were imposed.

Substantial Tax Assessment

FMCG major Hindustan Unilever Ltd (HUL) announced it has received an income tax assessment order demanding ₹1,559.69 crore for the financial year 2021-22. The notice pertains to transfer pricing adjustments and corporate tax disallowances.

No Material Financial Impact Claimed

Despite the significant sum, HUL stated the order will have no material impact on its financials, operations, or other business activities. The company confirmed that no penalties, sanctions, or restrictions have been imposed by the tax authorities.

Appeal Planned

Hindustan Unilever Ltd intends to file a formal appeal with the appellate authority within the permissible timeline. The company's recent financial disclosures showed flat volume growth and a net profit of ₹2,694 crore for the quarter.

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