Is L&T padding quarterly turnover data? MSME suppliers allude
Updated: Nov 10, 2015 11:10:48am
New Delhi, Nov 11 (KNN) One of India's largest conglomerates might be playing up with numbers to meet quarterly market expectations by reporting higher sales, alluded a group of suppliers to L&T.
The shocking incident has come to light because of frequent instances of mismatch in the C-forms issued by the L&T (based on purchase booked) as against the actual value of goods supplied to them.
“What people in L&T Construction and PT&D division do are that they book sales while giving orders to suppliers and C-form is prepared based on these numbers. The supplies on the other hand are made to L&T in subsequent quarters later, usually in parts, obviously having different invoice value” says one of the suppliers based in NCR region.
“We are running from pillar to post but no senior L&T functionary is ready to respond to our plea. On the other hand, the state VAT authorities are twisting our arms to submit the C-form of the right value or pay up penalties. Worse L&T has become indifferent to woes of its suppliers,” he added.
The C-form is used for inter-state sales. A 2% Tax is if goods are sold with C-form otherwise the seller has to deposit full state VAT 14%.
L&T once the benchmark for better corporate governance is now notorious for delaying payments to its suppliers particularly smaller suppliers.
In a study conducted by FISME using data submitted to Registrar of Companies, L&T was among the top three companies having outstanding payments of Micro and Small enterprises over Rs. 1000 crore. (KNN Bureau)
The shocking incident has come to light because of frequent instances of mismatch in the C-forms issued by the L&T (based on purchase booked) as against the actual value of goods supplied to them.
“What people in L&T Construction and PT&D division do are that they book sales while giving orders to suppliers and C-form is prepared based on these numbers. The supplies on the other hand are made to L&T in subsequent quarters later, usually in parts, obviously having different invoice value” says one of the suppliers based in NCR region.
“We are running from pillar to post but no senior L&T functionary is ready to respond to our plea. On the other hand, the state VAT authorities are twisting our arms to submit the C-form of the right value or pay up penalties. Worse L&T has become indifferent to woes of its suppliers,” he added.
The C-form is used for inter-state sales. A 2% Tax is if goods are sold with C-form otherwise the seller has to deposit full state VAT 14%.
L&T once the benchmark for better corporate governance is now notorious for delaying payments to its suppliers particularly smaller suppliers.
In a study conducted by FISME using data submitted to Registrar of Companies, L&T was among the top three companies having outstanding payments of Micro and Small enterprises over Rs. 1000 crore. (KNN Bureau)
Loading...
