LG Electronics India advanced 1.07% to Rs 1,484.90 after the company signed Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT), leading to a reduction in its net tax exposure.
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 Indias 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 Koreabased LG Electronics, is one of Indias 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 companys 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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