Nokia Raises Tax Issue With Commerce Minister Anand Sharma; Will Stay In India
New Delhi: Finnish mobile phone maker Nokia today raised the 2,080 crore tax dispute with Commerce Minister Anand Sharma, seeking his help for an early resolution of the matter.
"He (Nokia Executive Vice President for Devices and Services Stephen Elop) met the Minister and asked him to resolve the tax issue. The Minister has suggested he should approach the ministry concerned, which is the Finance Ministry," a source said.
Nokia India has been slapped with a tax demand notice of 2,080 crore for the five years beginning 2006-07. The demand concerns the tax treatment of payments made for software supplied by Nokia's parent company for devices produced in India. Indian tax authorities consider the payments as royalties that are subject to taxation in India.
While Elop refused to say if he raised the tax demand with Sharma, sources said the issue figured during the talks.
Elop said, "The principal reason here is to reassure and provide complete support for our great efforts here in India. I have had the opportunity to meet the minister just a few minutes ago."