Dr Reddy's Russia Arm Faces Rs 11.4 Million VAT Penalty
New Delhi: Dr. Reddy's Laboratories Limited has announced that its step-down wholly-owned subsidiary in Russia has received a final tax penalty of RUB 9.27 million (approximately Rs 11..40 million) from Russian authorities over VAT-related reclassification of services, with the company stating that the penalty will not have any material impact on its financials or operations.
The penalty decision was issued on April 13, 2026, by the Interdistrict Inspectorate of the Federal Tax Service of Russia to Dr. Reddy’s Laboratories LLC, Russia. The action pertains to the levy of Value Added Tax (VAT) following the reclassification of certain marketing services as taxable services by the tax authority.
The penalty amount has been finalised at RUB 9.27 million, which is significantly lower than the earlier assessed amount of RUB 20.09 million (approximately ₹24.50 million).
Dr. Reddy’s clarified that, based on its internal assessment, the revised penalty does not have any material impact on the company’s financial position, operations, or other business activities.
The disclosure has been made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and follows an earlier intimation issued in January 2026 regarding the matter.
