Hindustan Unilever Faces ₹19.9 Billion Tax Demand for 2020-2021

Hindustan Unilever Ltd. said the income tax authority in Mumbai has issued a demand notice of ₹19.86 billion for 2020-21 related to certain related-party transactions. The company plans to appeal the order before the appellate authority.

The tax authorities have made transfer pricing adjustments by disallowing payments to related parties and challenging the valuation of such transactions. They have also made corporate tax disallowances linked to depreciation claims, HUL said.

The company said it does not expect the order to have any material impact on its financial or operational performance.