Qatar slaps Rs 238.9-crore tax penalty on L&T

Larsen & Toubro (L&T) has been charged with two penalties worth Rs 111.31 crore and Rs  127.64 crore by Qatar's income tax authorities citing variation in the income declared by the company against the authority’s assessment, the company said in an exchange filing on November 17.

The penalties have been imposed for the tax period between April 2016 to March 2017 and April 2017 to March 2018. "An appeal has been filed against the levy of this penalty as the company believes it is arbitrary and unjustified," the L&T  said.

Middle East is the second most important geography for L&T. In the first half of 2023-24, it accounted for 41 percent of its order inflow and orders from the region stood at 32 percent of its Rs 4,50,700 crore order book as of September end.

L&T said that it is "reasonably confident of a favourable outcome at the appellate level", adding that no material adverse impact is envisaged on the financial, operations or other activities of the company.