Quarterly Result5 Jan 2026, 08:37 pm
LG Electronics India Ltd. Signs Advance Pricing Agreement with CBDT, Reducing Contingent Liabilities by INR 4,877.38 Million
AI Summary
LG Electronics India Ltd. has signed an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT) in India, effective from April 1, 2014, to March 31, 2023. The APA signing led to the reduction of contingent liabilities related to direct taxes by INR 1,724.38 Million and eliminated a contingency amount of INR 3,153.00 Million for royalty payments to LG Electronics Inc., Korea (Promoter). The company will incur a net tax expense of INR 177.12 Million (excluding applicable interest) and pay a net amount of INR 38.59 Million to LG Electronics Inc. for secondary adjustment provisions compliance with Indian transfer pricing laws.
Key Highlights
- LG Electronics India Ltd. signed an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT) in India
- APA effective from April 1, 2014, to March 31, 2023
- Contingent liabilities related to direct taxes reduced by INR 1,724.38 Million
- Elimination of contingency amount of INR 3,153.00 Million for royalty payments to LG Electronics Inc., Korea (Promoter)
- Net tax expense of INR 177.12 Million (excluding applicable interest) and a net amount of INR 38.59 Million to LG Electronics Inc. for secondary adjustment provisions compliance