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.
Larsen & Toubro (L&T)'s net profit during the second quarter of the fiscal year 2023-24 climbed 45 percent year-on-year to Rs 3,223 crore, as per the financial results declared by the company on October 31.
L&T reported a 19 percent rise in consolidated revenue for Q2FY24 to Rs 51,024 crore, compared to Rs 42,763 crore clocked in the corresponding quarter of the previous fiscal.
Higher-than-expected sales growth was driven by execution tailwinds in the infrastructure projects segment and sustained growth momentum in the IT and ITeS portfolio.