Colgate Palmolive gets Rs 170 crore Transfer Pricing Order from Income Tax authorities

Leading oral care products maker Colgate-Palmolive (India) has received a Rs 170 crore Transfer Pricing Order from Income Tax authorities disallowing 'certain' international transactions. The Transfer Pricing Order is for the financial year 2021-22. Transfer Pricing refers to the pricing of cross-border transactions between two related entities.

The company will take this before the 'Dispute Resolution Panel' and is awaiting completion of the assessment proceedings, Colgate-Palmolive (India) Ltd said in regulatory updates on Monday evening. "The company is awaiting completion of the Draft Assessment proceedings and post the same, an application will be made before the Dispute Resolution Panel (DRP)," it said.

The Assessing Authority has disallowed certain international transactions of the company, it added. However, Colgate-Palmolive (India) also added that there is no impact on the financial, operation or other activities of the company due to this Transfer Pricing Order. The DRP is an Alternative Dispute Resolution (ADR) mechanism for resolving disputes related to Transfer Pricing in international transactions. Last week, Colgate-Palmolive India reported a 22.31 per cent increase in net profit at Rs 340.05 crore for the September quarter. Its sales were up 6.09 per cent to Rs 1,462.38 crore.