3M India Limited , a prominent player in the Indian market, has recently received a final settlement order under the Direct Tax Vivad Se Vishwas Scheme, 2020. This development marks a significant step in the company's efforts to resolve outstanding tax disputes.

Key Details of the Settlement

• Scheme: Direct Tax Vivad Se Vishwas Scheme, 2020
• Issuing Authority: Principal Commissioner of Income Tax, Bengaluru-2
• Financial Year Covered: 2008-09
• Refund Amount: Rs 2.28 crores

Background of the Scheme

The Direct Tax Vivad Se Vishwas Scheme, introduced by the Finance (No.2) Act, 2020, aims to settle tax disputes efficiently. 3M India had applied under this scheme to resolve open tax litigations for the period spanning from FY 2004-05 to FY 2013-14.

Settlement Process

According to the LODR disclosure dated November 4, 2022, the company had previously received a Certificate in Form 2 from the Principal Commissioner of Income Tax, indicating the acceptance of their application for FY 2008-09. The recent development involves the receipt of the final order in Form 4, dated November 4, 2022, specifically for FY 2008-09.

Financial Implications

While the settlement entitles 3M India to receive a refund of Rs 2.28 crores for FY 2008-09, the company has stated that this settlement has no material impact on its operations or activities.

Broader Context

This settlement is part of 3M India's larger strategy to resolve tax disputes for multiple financial years. The company had opted for the Scheme to settle various open tax litigations covering the period from FY 2004-05 to FY 2013-14.

The Direct Tax Vivad Se Vishwas Scheme represents a government initiative to streamline the resolution of tax disputes, potentially benefiting both companies and the tax authorities by reducing litigation and expediting settlements.

As companies continue to navigate complex tax landscapes, such schemes offer opportunities for resolving long-standing disputes, potentially leading to improved financial clarity and reduced legal burdens for corporations operating in India.

3M India Limited , a subsidiary of the US-based 3M Company, has reported strong financial results for the quarter ended September 30, demonstrating significant growth across key metrics.

Financial Highlights

The company's performance for the quarter showcases substantial year-on-year improvements:

Sales grew to Rs. 278.81 crores compared to the previous year, while net profit after tax increased to Rs. 191 crores.

Segment-wise Performance

3M India delivered broad-based growth across all four of its business segments:

Corporate Developments

• The Board has appointed Mr. Dwarakanath Ranganath Mavinakere as an Additional Independent Director, effective February 2, for a five-year term, subject to shareholder approval.
• The company has approved the appointment of PriceWaterhouseCoopers Chartered Accountants LLP as statutory auditors for five years, replacing BSR & Co. LLP whose term concludes at the 39th AGM.

Strategic Initiatives

3M Company USA has entered an agreement to sell its Precision Grinding & Finishing business to Nimbus, a Europe-based private equity firm. The transaction is expected to close in the first half of the following year. The impact on 3M India Limited is expected to be minimal, as this business contributed less than 1% of 3M India's revenue in the previous fiscal year.

3M India continues to leverage its global innovation expertise to develop solutions that address the unique needs of diverse customers in India. With its strong performance across all business segments and strategic corporate moves, the company appears well-positioned for continued growth in the coming quarters.