LG Electronics India Limited has informed the Exchange regarding Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT)
LGEINDIA · price
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Awaiting price reaction for this filing.
LG Electronics India has signed and concluded an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT) on January 5, 2026, covering a 9-year period from April 1, 2014 to March 31, 2023. The APA application was originally filed on March 29, 2018. As a result, contingent liabilities of ₹1,724.38 million related to direct taxes and ₹3,153.00 million related to royalty payments to its Korean promoter LG Electronics Inc. will become nil. The company will book a net tax expense of ₹177.12 million and pay ₹38.59 million to LG Electronics Inc., Korea under secondary adjustment provisions of transfer pricing laws.
Positive for shareholders — removes over ₹4,877 million in uncertain tax and royalty-related contingent liabilities, providing much-needed clarity and reducing future earnings uncertainty. Minimal cash outflow and modest tax expense are well absorbed.