Qatar fines L&T Rs 239 crore in taxes

20 Nov 2023 , 02:11 PM

The massive Indian construction and engineering firm Larsen & Toubro (L&T) announced in a stock exchange filing on Friday that it had been hit with two penalties by the income tax authorities in Qatar, amounting to Rs 111.31 crore and Rs 127.64 crore, respectively, for an alleged discrepancy between the income the company reported and the authority’s assessment.

For the tax assessment periods of April 2016 to March 2017 and April 2017 to March 2018, a total of Rs 238.9 crore in fines have been levied. ‘An appeal has been filed against the levy of this penalty as the company believes it is arbitrary and unjustified,’ stated L&T.

The business stated that it is ‘reasonably confident of a favourable outcome at the appellate level’ and that it does not anticipate any materially negative effects on its operations, finances, or other business-related activities.

For L&T, the Gulf area is a significant market, contributing up to 41% of its order inflow during the April through September portion of the current fiscal year. As of September’s end, the orders accounted for 32% of its Rs 4,50,700 crore order book.

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