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

The notice has been issued by the I-T department after it completed its probe and had conducted a 'survey' operation on thepremises of the Chennai in January this year.

The tax evasion, according to I-T department sources, pertains to royalty payment made against supply of software by the compamy's parent company which attracts a 10 per cent tax deduction under the Tax Deducted at Source (TDS) category.

The department has analysed the company's business statements since 2006, they said.

"Since establishing the Chennai factory in 2006, indeed since starting business operations in India in the mid-1990s, Nokia has been scrutinized by the authorities regularly and its policies have been validated by the Indian and Finnish Tax authorities in the normal course of tax proceedings.

"Nokia arrived in India 18 years ago and has grown to become a market leader, contributing to the rapid growth of the Indian economy. Nokia has invested over $330 million in Chennai since setting up the factory," the Nokia spokesperson said.

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