CVR Company Limited: – CVR Indian Sub has issued a tax notice to HUL of Rs 962. Seven crore seventy five lakh by the Office of the Deputy Commissioner of Income Tax in Mumbai. This sum costs Rs 329 out of Rs 433 which have been spent to improve the building. 33 crore as interest. This notice was received on August 23 as the company announced in the filing on Monday.
This is due to the non deducing of tax through TDS as provided under the income tax act 1961. This was done when Rs 1045 crore were paid for buying the IPR of India Health Food Drink (HFD) from various GSK Group of companies.
HUL said that at the present time, it does not envision adverse financial effects from the tax notice, pointing to strong grounds to appeal the taxation based on past legal rulings. Such precedents imply that to the tax situs of an intangible asset is connected to the location of its owner, and thus, the income arising from selling of such assets should not be taxed in India.
HUL’s equity shares also did not change on the BSE at Rs 2,819 with the total market value of the company at Rs 6. 61 lakh crore. Le also noted that the company yesterday from indemnification tax demans recover right and necessary legal challenge actions to the order took.
