2024-12-19 13:49:02 :
New Delhi, December 19 (Xinhua) — FMCG major Nestlé India on Thursday said the suspension of Switzerland’s most-favored-nation status to India will not have “any impact” on the company.
The FMCG company said in a statement that the suspension of MFN status under the Double Taxation Avoidance Agreement (DTAA) is a policy matter between the governments of India and Switzerland and is not “specific to Nestlé”.
Nestlé India, which owns well-known brands such as Maggi, Nescafe and KitKat, said it has “deducted 10 per cent withholding tax” on cross-border payments.
Earlier on December 11, the Swiss government announced the suspension of MFN treatment to India following a ruling by the Supreme Court of India, which in a judgment last year said that the provisions of the DTAA cannot be enforced unless notification is issued under Section 90. Most Favored Nation Income Tax Act.
This judgment of the Supreme Court comes in a case related to Nestlé, which overturned a previous order passed by the Delhi High Court in 2021, which had upheld the residual tax rate after considering the MFN clause in the DTAA applicability.
This increases the tax liability of Indian companies doing business in Switzerland.
“This matter is not a Nestlé-specific issue but a policy issue between India and Switzerland. We would like to inform you that Nestlé India was/is deducting 10% withholding tax and this has no impact on Nestlé India.” Nestlé India said an Indian company spokesperson.
India is one of the top ten markets for Swiss fast-moving consumer goods giant Nestlé, which has been operating in the country for 112 years.
is an investment $Between 2020 and 2025, the Indian market will invest 6000-6500 billion rupees to expand its manufacturing capabilities, etc.
Nestlé India operates nine factories here and is setting up its 10th factory in Odisha with revenue of $24,393.9 billion in the financial year 2023-24.
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