I-T dept to HC: Nokia owes R21,153 crore as total tax liability

Dec 10 2013, 02:09 IST
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SummaryNokia’s offer to pay a minimum of Rs 2,250 crore, which could increase depending upon the outcome of its deal with Microsoft.

The Income Tax department has informed the Delhi High Court that Nokia India and Nokia Corporation owe it Rs 21,153 crore as total tax liability (existing and anticipated), including penalty during a seven-year period from 2006-2013.

The amount payable by Nokia has been arrived at by the I-T department on the basis that the mobile manufacturing firm does not discharge its TDS liability on royalty payments and is not entitled to any deduction under tax laws for operating from a special economic zone (SEZ).

The submission has been made by the I-T department in its reply to Nokia’s plea for unfreezing of its assets in India prior to its $7.2 billion deal with Microsoft.

In case TDS liability is paid and the deduction under tax laws for operating from a SEZ is available to Nokia, then its total tax liability (existing and anticipated), including penalty would be Rs 14,200 crore.

Meanwhile, a bench of justices Sanjiv Khanna and Sanjeev Sachdeva adjourned the hearing on Nokia’s plea to Tuesday when the company may have to answer the court’s queries regarding the total investment made by it in India, dividend paid by it, quantum of purchases of raw materials, whether Nokia Corporation has been filing returns here, what will happen to Nokia Corp post-Microsoft deal, etc.

Nokia’s offer to pay a minimum of Rs 2,250 crore, which could increase depending upon the outcome of its deal with Microsoft, was recently turned down by the I-T department.

Meanwhile, Nokia, in a statement, said that it has not been served with “any official claim”. The firm said in the recent months it has seen and read about many claims from the I-T department and added that these are “without merit” and it will defend itself “vigorously” in court. “We have not been served with any official claim, so we can’t comment on this. We want to stress that our main focus right now is to remove the freeze on our Indian assets, including Chennai, before December 12. This is a separate matter from the broader tax dispute.

Chennai workers move High Court

New Delhi: Workers of Nokia India’s mobile manufacturing unit in Chennai on Monday moved the Delhi High Court seeking safeguarding their interests in view of the company’s ongoing legal battle with the Income Tax (I-T) department over its tax liabilities. Fearing job loss, the plea said that the workers want the mobile manufacturing unit in Chennai to continue its operation

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