Dr. Reddy’s Russian Subsidiary Gets Major Relief as Penalty Reduced to Rs 11.40 Million
Dr. Reddy’s Laboratories Ltd has recently disclosed to the stock exchanges that its Russian Subsidiary company, Dr. Reddy’s Laboratories LLC, Russia, has received a final penalty decision from the Russian tax authority.
Background of the Case
As per Dr. Reddy’s Laboratories, the russian tax authority has reclassified marketing services as taxable services, levying VAT (Value Added Tax). Based on this reclassification, the tax authority imposed a penalty.
The previous original penalty was higher, but in the final decision, the penalty was reduced. The original penalty was RUB 20.09 million (Rs 24.50 million), which has been slashed to RUB 9.27 million (Rs 11.40 million).
Key Details of Order
| Particulars | Details |
| Company | Dr. Reddy’s Laboratories Ltd |
| Subsidiary | Dr. Reddy’s Laboratories LLC, Russia |
| Authority | Interdistrict Inspectorate, Federal Tax Service of Russia |
| Original Penalty | RUB 20.09 million (Rs 24.50 million) |
| Final Penalty | RUB 9.27 million (Rs 11.40 million) |
| Order Date | April 13, 2026 |
Financial Impact
Dr. Reddy’s Laboratories clarified that, based on its evaluation, the penalty does not have any significant impact on its financials, operations, or other activities.
Company’s Disclosure Requirement
The above disclosure was made by Dr. Reddy’s Laboratories Limited on April 14, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in furtherance to its earlier disclosure dated January 24, 2026.
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