I-T dept slaps Rs 2,000 crore notice on Nokia

Delhi high court grants an interim stay of the demand

PTI | March 28, 2013



The Income Tax department in India has served a Rs 2,000 crore demand notice on Finnish mobile firm maker Nokia for alleged evasion of taxes in its business transactions in the country.

The department had on March 21 asked the firm to submit the amount of Rs 2,000 crore in about a week's time, I-T department sources said.

The Delhi High court has granted an interim stay of the demand after the mobilephone manufacturing company filed a petition challenging the order.

Nokia confirmed receiving the notice and said it is in "full compliance" with laws related to its business operations.

"Nokia confirms it has received an order from Indian tax officials. Nokia reiterates its position that it is in full compliance with local laws as well as the bilaterally negotiated tax treaty between the governments of India and Finland, and will defend itself vigorously.

"In this regard, Nokia filed a writ before the Delhi High Court last week and on Friday, March 22 the Court has issued notice to the Income Tax department to file its counter affidavit and has granted interim stay of the entire tax demand raised against Nokia till further orders," a Nokia spokesperson said in a statement to PTI.

The IT department will soon file its reply in the Delhi High Court stating the provisions that "enable and authorise" it to issue such a time-bound notice, department sources said.

The notice has been issued by the I-T department after it completed its probe and had conducted a 'survey' operation on the premises of in the south-Indian city Chennai in January this year.

The tax evasion, according to I-T department sources, pertains to royalty payment made against supply of software by the compamy's parent company which attracts a 10 per cent tax deduction under the Tax Deducted at Source (TDS) category.

The department has analysed the company's business statements since 2006, they said.

"Since establishing the Chennai factory in 2006, indeed since starting business operations in India in the mid-1990s, Nokia has been scrutinized by the authorities regularly and its policies have been validated by the Indian and Finnish Tax authorities in the normal course of tax proceedings.

"Nokia arrived in India 18 years ago and has grown to become a market leader, contributing to the rapid growth of the Indian economy. Nokia has invested over USD 330 million in Chennai since setting up the factory," the Nokia spokesperson said.

Comments

 

Other News

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Modi inaugurates, lays foundation stone of Pune Metro projects

Prime minister Narendra Modi inaugurated and laid the foundation stone for Pune Metro projects worth around ₹21,800 crore on Tuesday through video conferencing. Addressing the gathering on the occasion, the PM extended warm Diwali greetings to the people of Pune and Maharashtra and remarked that f

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter