Nokia protests new $414 million tax claim in India

HELSINKI Fri Mar 21, 2014 7:07pm IST

Low-cost handsets from Nokia on display at a Nokia store in Ahmedabad March 4, 2013. REUTERS/Amit Dave/Files

Low-cost handsets from Nokia on display at a Nokia store in Ahmedabad March 4, 2013.

Credit: Reuters/Amit Dave/Files

Stocks

   

HELSINKI (Reuters) - Finland's Nokia (NOK1V.HE), currently embroiled in an Indian Supreme Court tax case, said on Friday it has received a new 300 million euro sales tax bill from Tamil Nadu, a claim it considered "absurd".

According to the company, authorities in the southern state had alleged that handsets from Nokia's Chennai plant were not exported but instead sold in India. Products exported from India are exempt from tax.

"Nokia considers the claim to be completely without merit and counter to domestic tax laws," a company spokesman said.

Nokia said it had filed a writ with the Madras High Court in Chennai to contest the claim from Tamil Nadu's tax department and expected a hearing on the case next week.

It also brushed off suggestions the new case would complicate its 5.4 billion euro deal to sell its phone business to Microsoft Corp (MSFT.O).

Nokia has said it expects to close the Microsoft deal by the end of this month.

India's Supreme Court, in a broader tax dispute regarding the Chennai plant, last week ordered the Finnish company to give a 35 billion Indian rupee guarantee and waive some of its rights to legal defence before it transfers the factory to Microsoft.

The company spokesman said Nokia was still considering its options over the Supreme Court ruling regarding the plant, one of its biggest handset factories.

Nokia's disputes follow several high-profile tax cases involving foreign companies in India. Vodafone Group (VOD.L), IBM (IBM.N) and Royal Dutch Shell (RDSa.L) are among foreign groups contesting local tax claims.

(Reporting By Jussi Rosendahl; Editing by Sophie Hares)

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

Economic Pulse

REUTERS SHOWCASE

NSEL Fraud

NSEL Fraud

Govt orders Financial Tech to absorb NSEL, liabilities  Full Article 

Stalemate

Stalemate

WTO prepares for crisis talks as India keeps veto on global deal.  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Earnings Season

Earnings Season

HDFC Bank eyes pickup in corporate credit.  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

Iron Ore Imports

Iron Ore Imports

JSW Steel to boost iron ore imports by up to 80 percent.  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Remembering Margerie

Remembering Margerie

Total’s "Big Moustache"- bon vivant, deal-maker and risk-taker .  Full Article 

Reuters India Mobile

Reuters India Mobile

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