Dr. Reddy’s Laboratories has announced that its step-down wholly-owned subsidiary in Russia, Dr. Reddy’s Laboratories LLC, received a tax audit decision on January 23, 2026. The audit resulted in a levy of Value Added Tax (VAT) due to the re-classification of marketing services. This led to a penalty quantified at Rub million 20.09 [INR 24.50 million]. The company states there is no material impact on financials, operations, or other activities.
Tax Audit Decision in Russia
Dr. Reddy’s Laboratories announced that its Russian subsidiary, Dr. Reddy’s Laboratories LLC, has received a tax audit decision. The decision was issued on January 23, 2026, by The Interdistrict Inspectorate of the Federal Tax Service of Russia.
Details of the Action
The tax audit resulted in a levy of Value Added Tax (VAT) because of a re-classification of marketing services. The authority determined that the services should be classified as taxable.
Financial Impact
As a result of the audit, the authority has imposed a penalty of Rub million 20.09, which is equivalent to INR 24.50 million. According to Dr. Reddy’s, based on their evaluation, this decision does not have any material impact on the company’s financials, operations, or overall business activities.
Source: BSE
