L&T Slapped With Tax Penalty Of Rs 239 Crore; Check Details Here

India's construction and engineering major Larsen & Toubro (L&T) informed via an exchange filing on Friday that it has been asked to pay a penalty of QAR 4,86,80,120 and QAR 5,58,22,856 by Qatar's General Tax Authority. In an exchange filing the company said, "The General Tax Authority, Qatar vide its Tax Assessment Notification dated September 6, 2023, has imposed a penalty of 4,86,80,120 QAR ( approx Rs. 111.31 crores) for tax period 01/04/2016 to 31/03/2017 and 5,58,22,856 QAR (approx 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)."

The company said that in this regard an appeal has been filed against the levy of this penalty as it believes the penalty is arbitrary and unjustified.

L&T has been penalized by Qatar's income tax authorities for alleged variation in the income declared by the company compared with the assessment of the authority, said the company.

According to the exchange filing, "The Company is of the view that the penalty levied is arbitrary and unjustified. Hence it has filed an appeal. Based on the Company's assessment and prevailing law, the Company is reasonably confident of a favorable outcome at the appellate level. Hence, no material adverse impact is envisaged on the financial, operations or other activities of the Company."

The Gulf region is an important market for L&T, as it accounted for as high as 41% of its order inflow in the quarter ending September 30, 2023. The orders worked out to 32% of its Rs 4,50,700 crore order book as of September-end.

L&T shares closed 1.99% higher at Rs 3109.95 per share on Friday. In the last one year, the stock has gained 53.33%, while the stock's year-to-date (YTD) performance is 48.89%.