Nokia says tax officials raid Chennai production unit
CHENNAI/HELSINKI (Reuters) - Finnish phone maker Nokia(NOK1V.HE) said tax officials raided its production unit in Chennai on Tuesday. A company spokesman said it was cooperating with the probe, although he could not elaborate on what local authorities were looking for. The Chennai plant is one of Nokia's biggest facilities.
A senior Indian tax official said the investigation related to allegations that the company may have evaded around 30 billion rupees in taxes.
"We are suspecting a default in TDS (tax deducted at source) on payments to other countries against software supplies," said the Indian tax official, who declined to be named.
Nokia shares fell 2.3 percent to 3.20 euros by 1142 GMT.
Finance minister, P. Chidambaram, has vowed to clamp down on tax evasion to help the country plug a widening fiscal deficit.
In November, a junior finance minister said India was investigating the local unit of chocolate maker Cadbury over taxes.
(Reporting by Anupama Chandasekaran and Ritsuko Ando; Editing by Jane Merriman)
- Tweet this
- Share this
- Digg this
- U.S. nurse quarantined over Ebola calls treatment "frenzy of disorganization"
- Wall Street finally turning on Amazon as Bezos magic fades
- Google executive sets new stratosphere skydive world record
- Former Cream frontman Jack Bruce dies aged 71
- São Paulo running out of water as rain-making Amazon vanishes
The Nifty will stay in a broad band of 7,800-8,200 with an immediate resistance at around 8,050 levels. One should look to selectively accumulate in sectors such as infrastructure, capital goods, cement, power and metals. The outperforming sectors such as pharma, IT and auto ancillaries could take a breather due to international headwinds, writes Ambareesh Baliga. Full Article
Euro zone risks "relapse into recession" without structural reforms - Draghi. Full Article