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LG Electronics India Faces ₹153.58 Crore Customs Duty Notice
LG Electronics India received a notice from Customs officials.
The notice asks the company to explain why it should pay ₹153.58 crore in customs duty.
Officials say the company may not have included royalty payments when calculating the value of some imported goods.
The Directorate of Revenue Intelligence investigated the matter.
LG and Samsung are also being examined over the customs duty paid on imported OLED screens.
Officials believe those screens should have faced a 15% duty instead of 5%.
LG reportedly answered questions and voluntarily deposited money for the estimated difference in OLED duty.
Separately, LG India reported higher profit and revenue during the April-June quarter.
LG Electronics India Ltd received a show cause notice seeking ₹153.58 crore in customs duty.
The Directorate of Revenue Intelligence alleged that royalty payments were excluded from the assessable value of certain imports.
The notice was issued on September 22 by Customs authorities at Nhava Sheva Port and received on September 24.
LG and Samsung are also being investigated over alleged claims of a 5% concessional duty on imported OLED glass screens.
LG Electronics India reported a 27.2% year-on-year rise in first-quarter net profit to ₹653 crore.
- Who
- LG Electronics India Ltd; the Directorate of Revenue Intelligence and Customs authorities are involved.
- What
- LG received a show cause notice seeking ₹153.58 crore in customs duty over alleged exclusion of royalty payments from the assessable value of certain imports.
- Where
- The notice was issued by the Office of the Commissioner of Customs at Nhava Sheva Port in Navi Mumbai, India.
- When
- The notice was dated September 22 and received by LG on September 24; the company’s reported financial results cover April-June.
- Why
- Customs authorities allege that royalty payments were not included in the assessable value of certain imported goods.
Key facts
- Duty notice amount
- ₹153.58 crore
- Notice date
- September 22
- Date received
- September 24
- Issuing authority
- Office of the Commissioner of Customs, Nhava Sheva Port
- Investigator
- Directorate of Revenue Intelligence
- First-quarter net profit
- ₹653 crore, up 27.2% year-on-year
- First-quarter revenue
- ₹7,233 crore, up 15.5% year-on-year
Sources
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