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Sanofi India Receives Income Tax Order Worth ₹26.50 Crore

Written by: Team Angel OneUpdated on: Jan 23, 2025, 2:48 PM IST
Sanofi India faces a ₹26.50 crore tax order for disallowed international transactions and plans to appeal after the completion of draft assessment proceedings.
Sanofi India Receives Income Tax Order Worth ₹26.50 Crore
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Sanofi India Limited has been issued a transfer pricing order by the Office of the Joint Commissioner of Income Tax, Transfer Pricing, for the assessment year 2022-23. The order, dated January 21, 2025, imposes a tax liability of ₹26.50 crore.

Transfer Pricing Adjustments

The tax liability was triggered by adjustments related to disallowed international transactions flagged during the transfer pricing assessment. These transactions were reviewed and disallowed by the assessing authority, leading to the demand for additional taxes.

Regulatory Filing

On January 22, 2025, Sanofi India informed stock exchanges through a regulatory filing under Regulation 30 of the SEBI (LODR) Regulations. The filing included details of the tax order, the quantum of claims, and the company’s response. Sanofi stated that it is awaiting the completion of draft assessment proceedings and plans to appeal the order before higher tax authorities.

No Impact on Operations

Despite the tax adjustment, the company clarified in its disclosure that the order does not have any material impact on its financial, operational, or other activities. Operations remain unaffected, according to Sanofi India’s statement.

Appeal Process to Follow

Once the draft assessment proceedings are finalized, Sanofi India intends to apply with higher tax authorities to challenge the order. The company has not provided a timeline for the appeal but has indicated its intent to contest the adjustments.

Share Price 

As of 11:27 AM today, on January 23, shares of Sanofi India Ltd were trading at ₹5,346.55, down ₹48.35 (0.90%) for the day, marking a 12.17% decline year-to-date and a 35.78% drop over the past year.

Sanofi India has stated that further updates on the matter will be provided after the draft assessment proceedings are finalized. The case showcases an issue in the pharmaceutical industry around transfer pricing regulations and international transactions in the country, an area that has seen increased regulatory oversight in recent years. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing

Published on: Jan 23, 2025, 2:48 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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