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

Drug Pricing

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 

Reuters India Mobile

Reuters India Mobile

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