Madras High Court orders review of Nokia tax demand

Tags: News
A court ordered tax authorities in Tamil Nadu on Tuesday to reconsider a nearly $400 million sales tax claim against Nokia on handsets made at the Finnish company's Chennai plant.

Nokia, which is embroiled in a separate tax dispute with the authorities that stopped the plant from being transferred to Microsoft as part of the sale of its mobile phone business, had appealed to the Madras High Court after receiving a demand notice for about 24 billion rupees ($396 million).

The court on Tuesday asked Nokia to deposit 10 percent of the disputed tax demand within eight weeks as a precondition for the two sides to discuss the claims afresh, according to a copy of the court order seen by Reuters.

Tamil Nadu authorities had alleged that handsets from Nokia's Chennai plant were not exported but instead sold in India, the company said in March, calling the claim "absurd".

Nokia is "weighing its options for legal recourse", it said in a statement on Tuesday after the court order. "(Nokia) would like to reiterate that it continues to see the Tamil Nadu claim as without merit and will defend itself vigorously," the company said.

Nokia last week closed the deal to sell its handsets business to Microsoft, but left the factory out of the deal. It would operate the Chennai factory as a contract manufacturing unit for Microsoft.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Indian-promoted global corporations must follow accounting best practices

    The international advisory board (IAB) of capital market regulator Securities and Exchange Board of India (Sebi) has suggested that separate governanc

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Cost of education must be controlled

In India, we pay very little attention to the cost ...

Rajgopal Nidamboor

Focus to keep your daily qualms at bay

Philosophers and scientists have, for long, compared the human brain ...

Gautam Gupta

What we can learn from the French fashion scene

It was a pleasure and a treat to experience one ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture