Income Tax Department Serves 2,000 Cr Notice To Nokia, HC Stays Demand

Bangalore: The Income Tax department has served a 2,000 crore demand notice on Finnish mobile firm maker Nokia for alleged evasion of taxes in its business transactions in the country.

The department had on March 21 asked the firm to submit the amount of 2,000 crore in about a week's time, I-T department sources said.

The Delhi High court has granted an interim stay of the demand after the mobile phone manufacturing company filed a petition challenging the order.

Nokia confirmed receiving the notice and said it is in "full compliance" with laws related to its business operations.

"Nokia confirms it has received an order from Indian tax officials. Nokia reiterates its position that it is in full compliance with local laws as well as the bilaterally negotiated tax treaty between the governments of India and Finland, and will defend itself vigorously.

"In this regard, Nokia filed a writ before the Delhi High Court last week and on Friday, March 22 the Court has issued notice to the Income Tax department to file its counter affidavit and has granted interim stay of the entire tax demand raised against Nokia till further orders," a Nokia spokesperson said in a statement.

The IT department will soon file its reply in the Delhi High Court stating the provisions that "enable and authorise" it to issue such a time-bound notice, department sources said.

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