FMCG major Hindustan Unilever Ltd (HUL) has been served a tax demand order of ₹1,986.25 crore for the financial year 2020–21, with authorities questioning the valuation of related-party transactions and certain depreciation claims.
The notice, issued by the Indian tax department, alleges discrepancies in the company’s transfer pricing adjustments and depreciation calculations. HUL, the Indian subsidiary of UK-based Unilever and the maker of brands such as Dove, Lifebuoy and Surf Excel, said it does not expect any material impact on its financials or business operations due to the order.
The company has indicated that it will contest the demand through appropriate legal channels. “The order has no material impact on the Company and it will be filing an appeal against the said order,” HUL said in a statement.
The development comes as tax scrutiny around multinational consumer goods firms continues to intensify, particularly in areas involving related-party transactions and pricing structures.