Sanofi India has disclosed an order received from the Commercial Tax Officer in Tiruvallur, Tamilnadu, related to the financial year 2021-22. The order determines a total tax demand of INR 2,37,02,854, which includes tax, interest, and penalty. This demand arose because the authority reportedly dismissed the company’s submissions regarding the eligibility of Input Tax Credit (ITC) claimed in FY 2021-22 pertaining to FY 2020-21 activities. The company intends to appeal this order.
Commercial Tax Authority Order Received
Sanofi India Limited announced the receipt of an order from the Office of the Commercial Tax Officer, Tiruvallur, Tamilnadu, pertaining to the Financial Year 2021-22. The company received this communication on February 19, 2026, with the order itself being dated December 30, 2025.
Details of Tax Demand
The Commercial Tax Officer issued an order determining a significant financial liability after dismissing the Company’s submissions. The total demand quantified in monetary terms is INR 2,37,02,854. This amount is broken down as follows:
- Tax Component: INR 1,34,27,399
- Interest Component: INR 89,32,714
- Penalty Component: INR 13,42,741
Alleged Contravention
The core issue cited involves the eligibility of Input Tax Credit (ITC). The authority reportedly did not consider the reconciliations furnished by the Company concerning ITC pertaining to FY 2020–21, which the company had claimed during FY 2021-22.
Impact and Next Steps
The company stated that the impact on its financial, operational, or other activities is currently being assessed for quantification. However, the management has confirmed its plan to challenge the ruling, stating, “The Company would make an appeal before Appellate Authorities.” This indicates that the liability is not considered final at this stage.
Source: BSE
