LG Electronics India seals 9-Year APA with CBDT, wipes out ₹4,877 Cr Contingent Liabilities

LG Electronics India Limited finalized a landmark Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT) on January 5, 2026, covering FY15 to FY23 (filed March 29, 2018). The deal resolves long-pending transfer pricing uncertainties.

Key Financial Impacts

Contingent Liabilities Eliminated: ₹1,724.38 million in direct taxes and ₹3,153 million tied to royalty payments to promoter LG Electronics Inc., Korea-totaling nearly ₹4,877 crore now nil.

Net Tax Expense: ₹177.12 million (excluding interest, computed per payment date).

Secondary Adjustment Payment: ₹38.59 million to LG Electronics Inc., per Indian transfer pricing rules.

This resolution enhances balance sheet clarity, slashing provisions and paving the way for cleaner financials.

Shares of LG Electronics India Limited was last trading in BSE at Rs. 1469.15 as compared to the previous close of Rs. 1483.20. The total number of shares traded during the day was 90626 in over 7831 trades.

The stock hit an intraday high of Rs. 1484.95 and intraday low of 1455.15. The net turnover during the day was Rs. 132712090.00.

Source : Equity Bulls

Keywords

LGElectronicsIndia LGEINDIA INE324D01010 HouseholdAppliances CBDT APA