Colgate faces Rs 170Cr transfer pricing order from tax authorities

Colgate-Palmolive (India), a prominent oral care products manufacturer, has received a Transfer Pricing Order amounting to Rs 170 crore from Income Tax authorities, pertaining to specific international transactions in the fiscal year 2021-22. Transfer Pricing involves determining the pricing for transactions between affiliated entities across borders. The company intends to present the matter before the Dispute Resolution Panel and is presently awaiting the conclusion of assessment proceedings, as stated in a regulatory update on Monday.

The company clarified that this Transfer Pricing Order does not affect its financial, operational, or other activities. The Dispute Resolution Panel serves as an Alternative Dispute Resolution mechanism for settling disputes related to Transfer Pricing in international transactions. In the preceding week, Colgate-Palmolive India reported a notable 22.31% surge in net profit, reaching Rs 340.05 crore for the September quarter. The company's sales also demonstrated an encouraging 6.09% increase, totaling Rs 1,462.38 crore.