Cadbury India being probed over R213 crore tax evasion charge

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SummaryThe company said since the probe was under way, it would be inappropriate on its part to discuss details at this juncture.

Tax authorities have detected alleged tax evasion of Rs 213 crore by the Indian arm of Cadbury, now owned by Kraft Foods, in two separate cases and have realised Rs 12.6 crore in one of the cases, minister of state for finance SS Palanimanickam said on Thursday in the Rajya Sabha.

“Two cases of tax evasion by Cadbury India Ltd have been detected by the Directorate General of Central Excise Intelligence during the years 2009-10 to 2012-13 up to October 31, 2012,” he said in reply to a question in the Rajya Sabha.

The minister said investigation was going on in the alleged Rs 213 crore central excise duty evasion by Cadbury India at Baddi in Himachal Pradesh. Cadbury India said the company was fully cooperating with authorities. The company said since the probe was under way, it would be inappropriate on its part to discuss details at this juncture.

In the other case involving alleged service tax evasion of Rs 13.43 crore, a demand of Rs 11.75 crore was confirmed along with a penalty of equal amount. A sum of Rs 12.08 crore tax with Rs 53 lakh interest was already realised, the minister said. Cadbury is also facing another probe by the authorities to decide whether Kraft needed to pay taxes arising from its $19-billion takeover of Cadbury.

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