Nokia says tax officials raid Chennai production unit

CHENNAI/HELSINKI Tue Jan 8, 2013 6:29pm IST

Picture shows a Nokia logo at a shop in Warsaw, January 26, 2012. REUTERS/Kacper Pempel/Files

Picture shows a Nokia logo at a shop in Warsaw, January 26, 2012.

Credit: Reuters/Kacper Pempel/Files

Related Topics

Stocks

   

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)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

GROUP OF 20

REUTERS SHOWCASE

Modi Speaks

Modi Speaks

PM Modi says al Qaeda will fail in India - CNN.  Full Article 

Alibaba Listing

Alibaba Listing

Alibaba surges on massive demand in trading debut  Full Article 

Importing Rice

Importing Rice

Top rice exporter India importing over 100,000 T on temporary supply squeeze.  Full Article 

GSK Fined

GSK Fined

China hands drugmaker GSK record $489 mln fine, sentences executives.  Full Article 

HMT in Demand

HMT in Demand

Fans rush to HMT as watchmaker marks time.  Full Article 

Apple Not Cool?

Apple Not Cool?

Some consumers say Apple is losing its "cool" factor  Full Article 

Asian Games 2014

Asian Games 2014

Full coverage of the 17th Asian Games as Incheon.  Full Coverage 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage