Nokia protests new $414 million tax claim in Tamil Nadu

Written by Reuters | Helsinki | Updated: Mar 22 2014, 16:18pm hrs
Nokia ChennaiTamil Nadu govt?s tax department has slapped a $414-million (close to Rs 2,500 crore) VAT claim on Nokia.
Finland's Nokia on Friday said it had received a new 300 million euro ($414 million) sales tax claim from a regional authority in India, adding that it considered the claim "absurd".

Nokia said it had filed a writ to protest Tamil Nadu government that claimed that handsets produced in the company's Chennai plant were not exported but instead sold in India.

Also read: Now, Tamil Nadu govt slaps Rs 2,400 crore tax demand notice on Nokia

"Nokia considers the claim to be completely without merit and counter to domestic tax laws," the company said, and added the new claim had nothing to do with the closing of its deal to sell its phone business to Microsoft.

India's Supreme Court last week in a broader tax dispute ordered Nokia to give a 35 billion Indian rupee ($571 million) guarantee before it transfers the Chennai plant to Microsoft.