3M India Limited has taken a major leap in resolving its tax litigations for FY 2004-05 to FY 2013-14. The company is resolving the outstanding tax disputes under Vivad Se Vishwas (VSV) scheme, for which the total tax payable is ₹121.1 million. The move is a major resolution of longstanding tax proceedings and gives the company better financial clarity.
Key Highlights:
Historic Tax Settlement: 3M India opted for Direct Tax Vivad Se Vishwas Scheme (2024), settling tax disputes for a number of years, including standalone payments of ₹11.1 million for the year FY 2010-11. Total liability for the years under dispute is ₹121.1 million.
Years Covered: The deal covers litigation for financial years 2004-05 to 2013-14, ending long-standing income tax disputes.
No Penalty or Interest: The final settlement under the scheme is free of any penalty or interest but leads to a one-time tax charge in the books of accounts that doesn't impact day-to-day activities.
Financial Impact: The firm estimates a cash outflow of around ₹43 crore, although it expects to get back some tax refunds as more taxes were paid under protest in previous years than current liabilities.
Current Performance: There is no meaningful operational impact from the massive one-off tax outlay. 3M India's balance sheet remains healthy with strong revenue growth and special dividends declared in recent years.
Why It Matters By settling historical tax disputes, 3M India can focus on core business without the encumbrance of contingent liabilities. Active use of a government amnesty scheme ensures investors in terms of risk management and transparency.
Source: Reuters, TradingView, BSE Filings, 3M India Corporate Announcements.
Source: Reuters, TradingView, BSE Filings, 3M India Corporate Announcements.3M India Limited has taken a major leap in resolving its tax litigations for FY 2004-05 to FY 2013-14. The company is resolving the outstanding tax disputes under Vivad Se Vishwas (VSV) scheme, for which the total tax payable is ₹121.1 million. The move is a major resolution of longstanding tax proceedings and gives the company better financial clarity.
Key Highlights
Historic Tax Settlement: 3M India opted for Direct Tax Vivad Se Vishwas Scheme (2024), settling tax disputes for a number of years, including standalone payments of ₹11.1 million for the year FY 2010-11. Total liability for the years under dispute is ₹121.1 million.
Years Covered: The deal covers litigation for financial years 2004-05 to 2013-14, ending long-standing income tax disputes.
No Penalty or Interest: The final settlement under the scheme is free of any penalty or interest but leads to a one-time tax charge in the books of accounts that doesn't impact day-to-day activities.
Financial Impact: The firm estimates a cash outflow of around ₹43 crore, although it expects to get back some tax refunds as more taxes were paid under protest in previous years than current liabilities.
Current Performance: There is no meaningful operational impact from the massive one-off tax outlay. 3M India's balance sheet remains healthy with strong revenue growth and special dividends declared in recent years.
Why It Matters By settling historical tax disputes, 3M India can focus on core business without the encumbrance of contingent liabilities. Active use of a government amnesty scheme ensures investors in terms of risk management and transparency.
Source: Reuters, TradingView, BSE Filings, 3M India Corporate Announcements.
