Nestle India said a big thing about India, Switzerland withdrawing India's MFN status did not make any difference

New Delhi : FMCG company Nestle India, which manufactures daily needs goods, has said a big thing about India. The company said in its statement on Thursday that the company has not been affected in any way by the removal of the MFN or Most Favored Nation status given to India by Switzerland.

The FMCG company said in a statement, suspension of MFN status under the Double Taxation Avoidance Agreement or DTAA is a policy issue between the Government of India and Switzerland. It has no direct relation with Nestle. Nestle India owns popular brands like Maggi, Nescafe and KitKat.

Most Favored Nation provision suspended

The company is already deducting 10 per cent 'withholding tax' on cross-border payments. On December 11, Switzerland had suspended the provision of 'Most Favored Nation' in the agreement signed with India for avoidance of double taxation.

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does not apply automatically

Giving information about withdrawal of MFN status in a statement on December 11, the Finance Ministry of Switzerland had said that this step has been taken in the context of a decision of the Supreme Court of India last year. The High Court had said in its decision that if the Indian Government has signed a tax treaty with a country before joining the Organization for Economic Co-operation and Development i.e. OECD, then the MFN provision does not automatically apply.

Deduction of withholding tax

Due to this, the tax liabilities of Indian companies operating in Switzerland had increased. Nestle India spokesperson has said that this matter is not related to Nestle, but it is a policy matter between India and Switzerland. We would like to inform you that Nestle India is already deducting 10 percent 'withholding tax' and it will not have any impact on us.

9 factories operating

India is one of the top 10 markets for Swiss FMCG company Nestlé SA, where it has been operating for 112 years. The company is investing Rs 6,000-6,500 crore in the period 2020-2025 in the Indian market to increase its manufacturing capacity. Nestle India operates 9 factories here. The company is in the process of setting up its 10th factory in Odisha. Its revenue in the financial year 2023-24 was Rs 24,393.9 crore.

(with agency input)