A major action has been taken in Qatar against the Indian engineering and construction sector giant Larsen & Toubro (L&T). Qatar’s tax authorities have imposed a huge penalty on L&T. This penalty is regarding a matter related to income tax.
The company gave this information
Larsen & Toubro has informed the stock markets about the action taken against it. The company has told that it has been slapped with two penalties in Qatar. One penalty is of Rs 111.31 crore, while the other penalty is of Rs 127.64 crore. In this way, a penalty of Rs 239 crore has been imposed on L&T in Qatar by combining both. These penalties are for the period from April 2016 to March 2017 and April 2017 to March 2018.
Penalty imposed due to this reason
According to the information given by the company, this action has been taken against it. This has been done regarding the matter related to income tax. Qatar’s tax authorities say that the tax assessment they did does not match the income reported by the company. Due to this difference between the income declared by the company and the assessment of the tax department, the tax department has decided to impose penalty.
The company appealed against the penalty
Qatar L&T has termed this action of the tax authorities as illogical and arbitrary. The company said that it has filed an appeal against the penalty. Based on the company’s assessment and the laws applicable in Qatar, the company is confident that the decision at the appeal stage will be in its favor. The company has clearly denied that this action is going to have any impact on its financial health or operations.
This is the work of L&T
Let us tell you. That L&T is counted among the largest engineering and construction companies in the world. L&T is currently working on dozens of projects in India and outside India. During the quarter ending September, L&T’s consolidated revenue was more than Rs 51 thousand crore. The company’s revenue had increased by 19 percent on year-on-year basis during the September quarter.
Also read: These small savings schemes are of great use, know these great benefits of small saving schemes!
Get more latest business news updates