Pharma Giant Cipla Slapped with ₹774 Crore Income Tax Demand Amid New Obesity Drug Launch
Mumbai-based Cipla faces massive income tax demand of ₹774 crore over rule violations, including short deductions and disallowance of expenses, amid the launch of its new obesity drug.
CiplaIncome Tax DemandRule ViolationsObesity DrugPharmaceutical IndustryReal Estate MumbaiJul 16, 2024
The income tax demand of ₹773.44 crore covers assessment years from 2015-16 to 2022-23, excluding any tax refunds. Cipla has confirmed the demand in its regulatory filings and plans to appeal against the tax order. The company has stated that the tax demands are not applicable under the law.
The tax authorities have cited rule violations, including short deductions, wherein the company deducted less tax than the rate mentioned in the provisions. Additionally, weighted deductions allowed for companies to invest in the development of knowledge and research capabilities were also disallowed, as well as expenses incurred for business operations.
Cipla is a well-established pharmaceutical company that has been operating in India for over 80 years. The company has a strong presence in the domestic market and exports its products to over 80 countries worldwide. Despite the income tax demand, Cipla remains committed to its mission of providing affordable and innovative healthcare solutions to patients globally.
Information
Cipla is an Indian multinational pharmaceutical company that was founded in 1935. The company is headquartered in Mumbai and has a strong presence in the domestic market. Cipla is known for its innovative and affordable healthcare solutions and has a global footprint, with exports to over 80 countries.
Cipla is a leading pharmaceutical company that has been operating in India for over 80 years. The company is committed to providing innovative and affordable healthcare solutions to patients globally.
Frequently Asked Questions
What is the amount of income tax demand slapped on Cipla?
The income tax demand on Cipla is ₹774 crore.
What are the rule violations cited by the tax authorities?
The tax authorities have cited rule violations, including short deductions, weighted deductions, and disallowance of expenses.
What is Cipla's response to the income tax demand?
Cipla has stated that the tax demands are not applicable under the law and plans to appeal against the tax order.
What is the significance of the income tax demand on Cipla?
The income tax demand on Cipla is significant as it comes at a time when the company is preparing to launch a new obesity drug, and may impact its financial performance.
What is Cipla's commitment to its customers?
Cipla remains committed to its mission of providing affordable and innovative healthcare solutions to patients globally, despite the income tax demand.
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