Larsen & Toubro (L&T) has been charged with two monetary penalties worth ₹111.31 crore and ₹127.64 crore by Qatar’s income tax authorities for a total tax penalty of ₹239 crore.
According to a regulatory filing by the infrastructure major to the stock exchanges, Qatar Tax Authority has charged the tax penalty over variation in the income declared by L&T against the authority’s assessment. The penalties have been imposed for the tax period between April 2016 to March 2017 and April 2017 to March 2018
The General Tax Authority, Qatar vide its Tax Assessment Notification dated September 6, 2023 has imposed a penalty of 4,86,80,120 QAR (~Rs. 111.31 crore) for tax period 01/04/2016 to 31/03/2017 and 5,58,22,856 QAR (~Rs. 127.64 crore) for tax period 01/04/2017 to 31/03/2018 under article (14) of income tax law number (24) for year 2018 (Qatar),” said L&T in the exchange filing.
Also Read: L&T Q2: Consolidated net profit rises by 22.5% to ₹2,229 crore
An appeal has been filed against the levy of this penalty as the engineering major believes it is arbitrary and unjustified. “Based on the company’s assessment and prevailing law, the company is reasonably confident of a favourable outcome at the appellate level,” said L&T in its exchange filing.
No material adverse impact is envisaged on the on financial, operations or other activities of the company, it added.
L&T achieved consolidated revenue of ₹51,024 crore for the quarter ended September 30, 2023 recording a year-on-year YoY) growth of 19 per cent, primarily aided by improved execution of the large order book and accelerated progress in the Projects and Manufacturing portfolio.
International revenues during the quarter at ₹21,898 crore constituted 43 per cent of the total revenue. The company received orders worth ₹89,153 crore at the group level during the quarter ended September 30, 2023, registering a robust growth of 72 per cent on YoY basis.
On Friday, shares of L&T settled 1.99 per cent higher at ₹3,109.95 apiece on the BSE.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
