P&G Hygiene and Health Care arrives at agreement with tax authorities, to pay Rs 36 crore

Procter & Gamble Hygiene and Health Care on Wednesday said it has arrived at an advanced pricing agreement with the tax authorities for certain identified transactions with the company's affiliate.

"As a consequence of this agreement, an additional tax liability, approximately Rs 36 crore (including interest) is payable," the company said. However, there will be a reduction in contingent liabilities of approximately Rs 87 crore, subject to withdrawal of relevant tax litigations by the respective parties. However, there will be a reduction in contingent liabilities of approximately Rs 87 crore, subject to withdrawal of relevant tax litigations by the respective parties.

The agreement is for financial years 2010-11 to 2018-19, said Procter & Gamble Hygiene and Health Care in a regulatory filing. "This is to inform you that the Company has arrived at an advanced pricing agreement with the tax authorities today, viz. March 26, 2024, determining appropriate transfer pricing methodology for certain identified transactions with the Company's affiliates," it said.

P&G Hygiene and Health Care owns popular brands such as Vicks in healthcare and Whisper in feminine care.