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