“The company has made a payment of ₹192.55 crore on 28th November 2024 in compliance with the aforesaid direction. The payment was made pursuant to receipt of aforesaid amount under an indemnification claim as per the relevant Sale and Purchase Agreement and hence, doesn’t have any financial implications at this stage,” Hindustan Unilever said in a regulatory filing.
The demand, which includes ₹329.33 crore in interest, arose from alleged non-deduction of TDS during the remittance under the provisions of the Income Tax Act, 1961. HUL had appealed the assessment order with the Commissioner of Income-tax (Appeals), Mumbai, and sought a stay on the demand and penalty proceedings.
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“…this is to inform that in view of the submission made by the Company, the Assessing Officer vide its Order dated 6th November 2024, directed the Company to make payment of 20 per cent of the total outstanding demand
of ₹962.75 crores on or before 30th November 2024 and kept the recovery proceedings in abeyance for the balance amount of the demand,” HUL said.
Following its order on November 6, 2024, the assessing officer directed HUL to make the partial payment by November 30, 2024, while keeping recovery proceedings for the remaining demand in abeyance. HUL fulfilled the payment on November 28, 2024, using funds received under an indemnification claim as per the relevant sale and purchase agreement.
The payment does not currently have financial implications for the company, as the indemnification claim offsets the liability. Shares of Hindustan Unilever Ltd ended at ₹2,479, down by ₹17.25, or 0.69%, on the BSE.
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(Edited by : Shoma Bhattacharjee)
