Govt Allows Patanjali Research To Pay Zero Taxes Due To This Reason; Revenues Cross Rs 30,000 Crore!
The Ayurvedic FMCG giant, Patanjali Group has registered a massive turnover volume of Rs 30,000 crore, which has pushed the Haridwar-based company as the most valued in the FMCG sector, only second to Hindustan Unilever Limited (HUL).
Not only has Patanjali’s home products like Divya Pharmacy and Patanjali Parivahan, among others performed exceptionally well in FY2021, its 2019-acquired debt ridden edible oil firm Ruchi Soya too, has registered a 24.4% spike in revenue in FY21.
In other news, the Income Tax Department of India has exempted the ‘Patanajli Research Foundation Trust’ from paying taxes for a period of five years, under Section 35 of the I-T Act, 1961.
Patanjali Research Exempted from Paying Taxes for 5 Years
Under Section 35 of the Income Tax Act, deduction allowable towards expenditure on scientific research is covered.
A section of the notification released by the Central Board of Direct Taxes on July 12 reads, “The Central Government hereby approves M/s Patanjali Research Foundation Trust, Haridwar (PAN:- AABTP8183E) under the category “Research Association” for Scientific Research for the purposes of clauses (ii) of sub-section (1) of section 35 of the Income-tax Act, 1961 read with rules 5C and 5D of the Income-tax Rules, 1962.”
This means from the assessment years 2022-23 to 2027-28, Patanjali Research Foundation Trust will be exempted from paying taxes, under the recognition/status of a ‘research association’.
Recognising the desperate need of scientific research-backed evidences, especially after Covid, Patanjali founder Swami Ramdev and chairman Acharya Balkrishna said,
“To accomplish this mission Patanjali Research Foundation Trust has invested significantly in Patanjali Research Institute to create a world class Research Institute, backed up with advanced scientific technology and a highly qualified scientists team.”
Patanjali’s Turnover Soars Over Rs 30,000 Cr
With the vision of standing as the largest FMCG player in the Indian market, Ramdev-led Patanjali group has registered a massive turnover of Rs 30,000 crore in FY 2021.
Currently, it has soared over all of its major competitors in the Indian FMCG sector and only falls behind HUL.
In a press release dated July 13, Patanjali Group gave a detailed report of its performance in FY 2021.
Some statements of the press release are doctrined below.
- The Ayurveda company has created history by making a turnover of over Rs 30,000 crore in FY 2021 during one of the most difficult times in the world’s history.
- The debt-ridden oil company Ruchi Soya, acquired by Patanjali in December 2019, has also witnessed a 24.4% growth in annual revenue, with the number going up from Rs 13,117 in FY 2020 to 16,318 crore in FY 2021.
- Furthermore, Patanjali-acquired Ruchi Soya’s EBITDA (earnings before interest, taxes, depreciation, and amortization) margin has skyrocketed by 122.27% to RS 1018 crore, while
- It’s Profit after Tax (PAT) has spiked too, by 204.01% to Rs 681 crore.
“This is a great turnaround of a bankrupt company in the history of Independent India,” adds the release.
In FY 2020-21, with Patanjali Ayurved Limited’s turnover of Rs 9783.81 crore, Patanjali Natural Biscuit (Rs65-0 crore), Divya Pharmacy (Rs 850 crore), Patanjali Agro (Rs 1600 crore), Patanjali Parivahan (Rs 548 crore), Patanjali Gramodhyog (Rs 396 crore), Patanjali Group turnover grew by over Rs 14,000 crore, states Zee Business.