Dr. Reddy’s Russian Subsidiary Company Faces Penalty of Rs 24.50 Million

Dr. Reddy’s Russian Subsidiary Company Faces Penalty of Rs 24.50 Million

Dr. Reddy’s Laboratories LLC, Russia, which is a subsidiary of Dr. Reddy’s Laboratories Limited, an Indian multinational pharmaceutical company, has received a tax audit decision from the Russian tax authority wherein the company has been penalised Rs 24.50 Million. The company has made a disclosure on 24th January, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, to the stock exchanges.

As per the company, it received a tax audit decision on January 23, 2026, from the Interdistrict Inspectorate of the Federal Tax Service of Russia. The penalty relates to the levy of Value Added Tax (VAT) upon the reclassification of marketing services as taxable services. Accordingly, the tax authority has levied a penalty of RUB million 20.09 (Rs 24.50 million).

Dr. Reddy’s has stated that based on its evaluation, there is no significant impact on the financials, operations, or other activities of the company. Additionally, the company has informed that it is currently evaluating filing a necessary reply or response with the Russian tax authority regarding the tax decision.