Pernod Ricard faces $600M India tax exposure over alleged Scotch undervaluation scheme
Indian tax authorities accuse Pernod Ricard of using India-only codenames to mask Scotch composition and age, allegedly undervaluing bulk imports by 67% to dodge 150% tariffs. Demand stands at $314M, could exceed $600M with penalties. Case is being contested at Delhi High Court against $2.9B FY India revenue base.
What happened
Pernod Ricard India · Indian tax authorities allege Pernod Ricard concealed Scotch composition and age via India-only codenames to undervalue bulk imports by
Key facts
- $314 million back tax
- $600 million potential payout
- 150% tariff
- 67.49% alleged undervaluation
- $2.9 billion FY India revenue
- 24 production sites
- ₹3,000 crore
Why this matters
This case sets precedent for transfer pricing on bulk Scotch imports across India, so any deal involving spirits brands with Indian distribution needs fresh diligence on customs valuation methodology.