VAT’s UP

Qatar Tax Authority Imposes Penalties worth ₹239 crores on L&T

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Doha January 02 2024:

General Tax Authority in Qatar has imposed a penalty of ₹111.31 crore for the tax period from April 1, 2016, to March 31, 2017, and an additional ₹127.64 crore for the period from April 1, 2017, to March 31, 2018 on the infrastructure giant Larsen and Toubro (L&T). The two monetary penalties amount to a total tax penalty of ₹239 crore.

According to a regulatory filing by the infrastructure major to the stock exchanges, Qatar Tax Authority has charged the tax penalty over variation in the income declared by L&T against the authority’s assessment.The penalties were levied under article 14 of income tax law number 24 for the year 2018 (in Qatar).

L&T promptly responded by filing an appeal against what it deems an arbitrary and unjustified penalty. The company insists that the penalties were a result of tax assessments and subsequent adjustments in the tax returns for the mentioned periods.

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