Supreme court ruling to disrupt pricing game


Oct 22, 2012:  A new supreme court ruling asking Excise Department to collect taxes at cost of production will change the pricing game in Indian consumer market. Many firm sell at lower price to win market share and attain volumes to increase their revenue. However these firms may have to pay higher tax now with this ruling coming into effect. The companies may be forced to revoke this strategy of pricing low for market penetration and also for clearing their stocks. This could impact firms across diverse sectors from consumer durable to pharma.


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