Indian conglomerate and one of India’s biggest companies, Larsen & Toubro has been fined ₹238.9 crore by the Qatar government. The government has said that the company’s declared income turned out to be more than what they had reported. The government did an assessment and came to this conclusion. The company has received this penalty on the declared income of the fiscal years 2017 and 2018 tax periods.
In a regulatory filing, the company stated, “An appeal has been filed against the levy of this penalty as the company believes it is arbitrary and unjustified.” The company also mentioned that they are confident that the decision will be ruled in their favour and added that it wouldn’t affect the company’s financials, operations and other activities.
The Middle East is the second most important region for Larsen & Toubro. The region accounted for almost 41% of the company’s total inflow. Moreover, out of the total revenue engrossed by the company in the first half of this year, 32% comes from the region, which is a huge chunk of revenue.
The company is one of the biggest construction companies in India and has been performing quite well in recent years. It reported a 19% increase in year-to-year revenue and a 45% year-to-year increase in its net profit in the July-September quarter of the fiscal year 2023-2024.