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
- UPDATE 4-Boy and girl on Korean ferry drowned with life jackets tied together
- More teams withdraw, Nepal's Everest season in jeopardy
- BJP eyes gains in south, east to cut clout of regional queens
- Met office rules out surplus monsoon in 2014
- RPT-Apple resets the clock as investors await next big thing
The opposition Bharatiya Janata Party was set to make gains in Tamil Nadu and West Bengal that began voting on Thursday in the sixth phase of a mammoth general election that could help it build a stable majority in parliament. Read | Full Coverage: Election 2014
India may cede top rice exporter spot under Southeast Asian price onslaught. Full Article