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

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

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