I-T dept summons PW on Nokia tax default
The I-T department had, on January 8, conducted a survey at Nokia's Sriperumpudur plant for possible tax default. It found prima facie default in TDS deductions on royalty payments made by the plant, since it began operations in 2006, to its parent company.
As per income-tax regulations, any payment made by a company to a non-resident company has to be subject to a 10% tax. Nokia has made payments of about R25,000 crore to its Finnish parent in the past 5-6 years, and the TDS liability comes to about R2,500 crore on that. Nokia refused comment on the matter, while Price Waterhouse Coopers said it was fully cooperating with the IT department. The IT department has found that Nokia evaded tax payment based on wrong advice of the audit firm.
“In the matter of the Nokia case, the IT department has called us as they are seeking our inputs on this. We will extend full cooperation to them on this matter,” Price Waterhouse Coopers said in a statement.
Price Waterhouse and Company is one of the network firms of Price Waterhouse Coopers.
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