The Director-General of Goods and Services Tax (GST) Intelligence, on Wednesday, launched an investigation into the Indian unit of Coca-Cola for alleged evasion of tax, according to a report by Money Control.
The tax officials, during their collection of goods and services tax, discovered that Hindustan Coca-Cola Beverages Pvt Ltd (HCCB) had not paid the taxes on the promotional and marketing amount it received from its parent company.
The company, when contacted by the news website, confirmed that it had got a showcase notice from the GST department, and said that it fully complied with the regulations.
HCCB, that has 15 factories in India, has not paid taxes worth Rs 242 crore over the past five years. However, Coca-Cola has more than 15 bottlers in India, but only HCBPL failed to pay the taxes, a person informed Money Control.
Deccan Herald could not verify this news independently.