LG Electronics has received a notice from Indian customs authorities regarding a tax shortfall. The authorities allege that the company failed to include royalty payments when calculating the customs value of imported goods.
The proposed tax assessment amounts to approximately ₹1.54 billion, specifically stated as ₹1,535,767,711. This notice was issued by the Office of the Commissioner of Customs (NS-V).
Under the Indian Customs Act of 1962 and the Customs Valuation Rules of 2007, royalty payments linked to the sale of imported goods must be included in their transaction value. The dispute centers on whether these payments constitute a condition of sale.
LG Electronics India is currently reviewing the notice and intends to respond within the designated timeframe. The company maintains that it has fully complied with all relevant customs regulations.
The financial impact of this matter remains uncertain as the notice is currently in the proposed assessment stage. It does not represent a final confirmed liability for the company at this time.
