I-T action on USV India puts spotlight on pharma marketing code, tax rules

Tax sleuths raid firm's premises in Mumbai, Nagpur, and Rajkot; USV denies violation of any regulations

The income tax (I-T) department raid on drug maker USV India on charges of paying off doctors to prescribe its medicines has put the spotlight on government norms on ethical marketing practices and tax regulations.

The Times of India reported on Tuesday that the I-T department had unearthed a nexus between the pharmaceutical company and doctors and had raided USV's premises in Mumbai, Nagpur, and Rajkot. USV confirmed the raid but denied violation of any regulations.

Pharmaceutical industry executives expressed surprise over I-T raids on a drug maker, while some experts said the issue could be purely tax-related — concerning the treatment