Hindustan Unilever receives ₹1,986 crore tax demand notice for FY2020-21. Here’s why

Fast moving consumer goods (FMCG) giant Hindustan Unilever announced that the company’s ₹1,986 crore tax demand notice from the Deputy Commissioner of Income Tax, Mumbai, according to an exchange filing.

“Assessment Order u/s 143(3) read with Section 144C(13) Income Tax Act, 1961 (ITA) along with the Notice of Claim. ₹1,986.25 crore with 156 of ITA,” the company informed the stock exchanges through a filing.

In the NSE filing, the tax authority objected to the valuation of certain related party transactions and corporate tax exemptions that the company had allegedly made in the nature of claimed depreciation.

“Tax authorities have made transfer pricing adjustments disallowing payments to related parties or objected to the valuation of such related party payments and claimed depreciation corporate tax deductions,” according to the filing data.

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