Indian multinational faces Tk 7.03cr fine

An Indian multinational company which took part in the construction of Dhaka's first elevated metro rail is facing a penalty of Tk 7.03 crore for delaying the filing of income tax return for fiscal year 2019-20.

An appeal at Taxes Appellate Tribunal Bangladesh against an order from the field office of income tax of the National Board of Revenue was "not considered favourably", said the company, Larsen & Toubro (L&T).

The order will be challenged at the next appellate forum, the company announced for investors at Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd on November 8.

This will have no material impact on financial, operations or other activities, it said.

Based on the assessment of facts and prevailing law, a favourable outcome is reasonably expected considering the fact that pandemic restrictions were in place when the filing was due, it added.

Contacted, an L&T official in Dhaka declined to comment on the issue.

Dealing in engineering, procurement and construction projects, the L&T has worked in various power sector projects in Bangladesh.

In February last year, its construction arm secured a contract from Bangladesh Hi-Tech Park Authority to construct hi-tech IT parks at eight locations across Bangladesh under an Indian line of credit provided by state-run Exim Bank.

The project mainly comprises procurement and construction of seven-storied structural steel buildings with a built-up area of 12 lakh square feet, it said in a disclosure at that time.