Unexpected Tax Storm: Sanofi India’s Response to a ₹390 Million Challenge

Sanofi India Ltd has received a tax demand order totaling ₹390.2 million from the Indian Income Tax Department, stemming from adjustments related to transfer pricing and disallowed international transactions for the assessment year 2022-23. The order, issued by the Office of the Joint Commissioner of Income Tax (Transfer Pricing), follows a detailed review of the company’s cross-border dealings and highlights the growing regulatory scrutiny on multinational pharmaceutical firms operating in India.

 

Sanofi India disclosed the development in a regulatory filing, emphasizing that the tax adjustment is linked to specific international transactions flagged during the assessment. The company has stated its intention to appeal the order before higher tax authorities once the draft assessment proceedings are finalized. Sanofi India clarified that the tax demand does not materially impact its financial or operational activities and that all business operations continue as usual.

 

This latest tax order underscores the increasing focus on transfer pricing compliance in India’s pharmaceutical sector. Sanofi India has assured stakeholders that it will provide further updates as the appeal process progresses and remains committed to adhering to regulatory requirements.

 

Source: CNBC-TV18, Angel One, MarketScreener, Sanofi India regulatory filings