HC wants I-T dept to submit details on Nokia seizures

Dec 11 2013, 05:19 IST
Comments 0
SummaryThe Delhi High Court on Tuesday asked the income-tax department to provide a valuation of properties of Nokia India (NIPL)

The Delhi High Court on Tuesday asked the income-tax department to provide a valuation of properties of Nokia India (NIPL) that have been attached by it in order to secure existing and anticipated tax demands of over Rs 21,153 crore raised by the department.

Nokia India had earlier made an offer of depositing Rs 2,250 crore in an escrow account hoping that the taxman would lift the freeze on its Chennai factory, which it plans to transfer to Microsoft by December 12.

The court also directed Nokia India to submit a bank guarantee as per which Microsoft has undertaken to cover the tax liabilities of Nokia Brazil, amounting to 800 million euros.

As per the the third and fourth amendment of the Microsoft-Nokia Corp agreement, the software giant has undertaken to cover tax liabilities of the Brazilian subsidiary amounting to 800 million euros. The Brazil leg of the global deal received nod after a local bank provided the bank guarantee of 44 million euros.

The court’s direction on Brazilian bank guarantee came after the department pleaded that they should receive the same treatment as has been made for Brazilian authorities and that Microsoft and Nokia should not be allowed to get away with their “discriminatory attitude”.

The hearing in the matter will continue on Wednesday.

Ads by Google

More from Economy

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...