3M India Limited has successfully concluded and signed an Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT) on February 23, 2026. This agreement resolves ongoing transfer pricing-related tax litigations spanning the financial years 2014-15 to 2022-23. The company has recorded a related tax expense of Rs. 170.95 Crores in its Profit and Loss Account as of December 31, 2025, following the finalization of terms.
Finalization of Advance Pricing Agreement (APA)
3M India Limited formally announced the conclusion of its Advance Pricing Agreement (APA) with the Central Board of Direct Taxes (CBDT). The final agreement was signed on February 23, 2026, concluding negotiations that began with an initial application filed on March 28, 2018.
This APA addresses and resolves certain ongoing transfer pricing related tax litigations matters concerning the financial years spanning 2014-15 through 2022-23. The company had previously accepted the terms of the draft APA and confirmed the expected finalization.
Financial Impact Recorded
As a direct result of concluding this agreement, the company has recorded a specific tax expense in its financial statements. A tax expense totaling Rs. 170.95 Crores has been recognized in the Profit and Loss Account of the Company as of the reporting date of December 31, 2025.
Confirmation of Disclosure
The company confirms that the signing and conclusion of the APA now finalizes the terms previously outlined in earlier communications. The management thanks all relevant parties for their cooperation in reaching this resolution.
Source: BSE
