India's construction and engineering behemoth, Larsen & Toubro (L&T), faced significant penalties from Qatar's income tax authorities. The company disclosed in a stock exchange filing that it incurred fines of Rs 111.31 crore and Rs 127.64 crore due to alleged disparities in its declared income versus the authority's assessment. These penalties, totaling Rs 238.9 crore, pertain to the tax assessment period spanning April 2016 to March 2018.
L&T swiftly appealed against the imposition of these penalties, asserting their belief in the arbitrary and unjust nature of the charges.
Despite these challenges, L&T remains optimistic about a favorable resolution at the appellate level. The company reassured stakeholders, stating that it anticipates no substantial adverse effects on its financial standing, operations, or overall activities.
Qatar stands as a significant market for L&T, contributing substantially to its order inflow. In fact, during the April-September period of the ongoing financial year, the Gulf region accounted for a notable 41% of L&T's total orders, constituting 32% of its extensive Rs 4,50,700 crore order book as of September-end.
(With Agency Inputs)
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