Nokia will have to clear Rs 6,500 cr tax liability

Tags: Nokia, News
Unfazed by threats of closure of Nokia's Chennai plant, a top Finance Ministry official today asserted that the Finnish company, which is being acquired by Microsoft, will have to clear a total tax liability estimated at around Rs 6,500 crore.

"Nokia will have to pay total tax liability," the senior official said when asked to respond to the recent statement of Finland's Foreign Minister Erkki Tuomioja.

Tuomioja had told a group of visiting Indian journalists last week that failure to resolve Nokia tax case before December 12 could lead to closing down of the Chennai plant which directly and indirectly employs 30,000 people in India.

"There is an agreement between Nokia and Microsoft that unless this dispute is solved and the assets of its Chennai plant unfreezed before December 12, the Chennai plant would be left outside of Nokia-Microsoft agreement.

"That of course, in the worst case, could lead to closing down of the Chennai plant, which is employing many thousand people, and with sub contractors up to 30,000 people. So, I think that would not be (in) anyone's interest," he had said.

The Income Tax Department had slapped a notice on Nokia's Indian subsidiary for violating withholding tax norms since 2006 while making royalty payments to its parent company in Finland.

Post new comment

E-mail ID will not be published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


  • The government might not get the timing right for its massive share sale plan

    A common thread binding the BJP’s first budget with the last three UPA budgets is the aggressive disinvestments targets set to mop up additional rev


Stay informed on our latest news!


GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India


Tushar Gandhi

Welfare must be humanitarian not political

We are a very political people. We politicise and corrupt ...

Purnendu Ghosh

How to distinguish a need from a want?

The day when the annual budget is announced is one ...

Shona Adhikari

Decades apart, yet a common ground in fine art

Today’s column is about two artists born many decades apart, ...


William D. Green

Chairman & CEO, Accenture