VAT now? Companies face tax demand worth Rs 30,000 crore

Around 200 companies, including Colgate Palmolive, L’Oreal, and McDonald’s India, have received notices from state tax authorities demanding taxes under the pre-GST regime. The states are seeking about ₹30,000 crore in taxes for the FY11-FY15 period, claiming that value-added tax (VAT) should be levied on the transfer of intellectual property rights (IPRs). Some companies argue that they have already paid service tax on these transactions.