JKB Financial Services Ltd.

As on : 06-Jan-2026

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06-Jan-2026 14:32

LG Electronics India gains after inking APA with CBDT

Following the signing of APA, contingent liabilities of Rs 172.43 crore related to direct taxes will become Nil. In Addition, contingency amount of Rs 315.30 crore related to royalty payments to LG Electronics Inc., Korea (Promoter) will also become Nil.

The company will incur net tax expense of Rs 17.71 crore (excluding applicable interest, which will be computed as per payment date). Further, LG Electronics India will be required to make net payment of Rs 3.85 crore to LG Electronics Inc. under the secondary adjustment provisions in compliance with India's transfer pricing regulations.

Earlier, the company had filed advance pricing agreement application dated March 29, 2018, with the Tax Authorities of India for the period of 9 Years i.e. April 1, 2014 to March 31, 2023.

LG Electronics India (LEIL), a subsidiary of South Korea'based LG Electronics, is one of India's leading consumer durables companies. It manufactures and sells a wide range of products, including TVs, refrigerators, washing machines, and air conditioners, serving both retail and institutional customers.

The company's standalone net profit declined 27.3% to Rs 389.43 crore despite 1% increase in revenue from operations to Rs 6,174.03 crore in Q2 FY26 over Q2 FY25.

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