Piramal Enterprises hit with nearly $172 million tax bill for pharma deal

India’s Piramal Enterprises said in an exchange filing on Friday that it had received a tax demand of Rs 1,502 crore (nearly $172 million) for the sale of its pharmaceutical business to Piramal Pharma in fiscal year 2021.

A tax office in the state of Maharashtra has asked the financial services company to pay 18 per cent Goods and Services Tax (GST) on the deal, the latter said in the filing.

The tax bill amounts to about 15 percent of its revenue for the fiscal year ended March 31, 2024. Piramal Enterprises said it has solid grounds to challenge the “unjustified” demand.

The company sold its pharmaceutical business and other related units to Piramal Pharma for Rs 4,487 crore in October 2020.

Maharashtra’s tax office has contended that the transfer of its pharma business to Piramal Pharma counts as an itemized sale and not a slump sale, the company said.

A slump sale, which receives more preferential tax treatment, refers to the sale of all assets and liabilities of an undertaking without values being assigned to individual assets and liabilities. Such a sale must also not hinder the business operations of the transferred entity.

An itemized sale, on the other hand, refers to assets and liabilities being sold with separate values assigned to each item.

Piramal Enterprises said it expects that the order would be set aside.

Related Posts

  • Pharma
  • June 30, 2025
  • 64 views
JB Chemicals shares tank 7% as Torrent Pharma acquires controlling stake worth Rs 25,689 crore

Shares of JB Chemicals and Pharmaceuticals nosedived as much as 7 percent to Rs 1,673 on June 30 after Torrent Pharmaceuticals acquired a controlling stake in the company from global…

  • Pharma
  • June 27, 2025
  • 205 views
Bharat Biotech, GSK to cut malaria vaccine price by more than half by 2028

Bharat Biotech International Ltd and GSK plc on Wednesday said they will reduce the price of the world’s first malaria vaccine for children ‘RTS,S’ developed by GSK, PATH and partners,…

Leave a Reply

Your email address will not be published. Required fields are marked *

You Missed

JB Chemicals shares tank 7% as Torrent Pharma acquires controlling stake worth Rs 25,689 crore

JB Chemicals shares tank 7% as Torrent Pharma acquires controlling stake worth Rs 25,689 crore

Amrita Hospital becomes a cut above rest in Cancer Care in India

Amrita Hospital becomes a cut above rest in Cancer Care in India

MedTech Zone AMTZ Puts Vizag on the Science Map of India

MedTech Zone AMTZ Puts Vizag on the Science Map of India

Bharat Biotech, GSK to cut malaria vaccine price by more than half by 2028

Bharat Biotech, GSK to cut malaria vaccine price by more than half by 2028