Colgate-Palmolive (India) Limited announced that the company has received a penalty order for Fiscal Year 2020-21 amounting to INR 13,53,58,847 for the alleged failure to maintain adequate documentation with respect to transfer pricing regulations. Name of the authority: Deputy Commissioner /Assistant Commissioner Of Income Tax Transfer Pricing. The Company will be filing an appeal before the Commissioner of Appeals, Income Tax, for the same.

It is pertinent to note that for prior years, the company have favorable Tribunal orders on major grounds on merits itself while penalty has been levied this time. The Company has maintained all the required documentation under transfer pricing regulations and has strong legal grounds to defend the case at an appellate authority level. The company are confident of getting a favorable order.

There is no impact on financial operations or any other activities of the Company due to this order.