LG Electronics India Signs APA with CBDT, Eliminates ₹487 Cr Contingent Liabilities

• LG Electronics India Ltd signed an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT) on January 5, 2026.
• The APA, filed in 2018, covers a nine-year period from April 1, 2014, to March 31, 2023.
• It eliminates contingent liabilities of ₹172.44 crore for direct taxes and ₹315.30 crore for royalty payments to LG Electronics Inc., Korea.
• The agreement will result in a net tax expense of ₹17.71 crore and a payment of ₹3.86 crore to LG Electronics Inc. under secondary adjustment.
• Separately, LG Electronics India reported a 27.3% decline in Q2 FY25 net profit to ₹389 crore, despite a 1% rise in revenue to ₹6,174 crore.

Why It Matters: LG India's APA with CBDT resolves significant tax and royalty liabilities, impacting future financials.