Nokia's appeal against Rs 2,080 cr tax notice rejected
Finland-headquartered telecom major Nokia said today that Indian tax authorities have dismissed its appeal against a Rs 2,080 crore income tax demand notice for five fiscal years starting 2006-07.business Updated: Jun 01, 2013 01:20 IST
Finland-headquartered telecom major Nokia said on Friday that Indian tax authorities have dismissed its appeal against a Rs 2,080 crore income tax demand notice for five fiscal years starting 2006-07.
In a statement on Friday, the company said that it may approach the Delhi High Court. “Nokia is disappointed by the decision of the commissioner of income-tax (Appeals), and will now examine all options open to it. These include taking the case back to the Delhi High Court,” it said.
Income tax authorities issued a demand notice to Nokia on March 15 alleging tax evasion by it on royalty payments made against supply of software by the company’s parent firm. Royalty payments attract a 10% tax deduction under the Tax Deducted at Source (TDS) category.
“In addition to the legal action Nokia is taking in India, it is worth remembering that the ministry of finance in Finland has launched the mutual agreement procedure with its counterpart in India under the Bilateral Double Taxation Avoidance Agreement to reach a common understanding on the matter. Nokia will act quickly and decisively to protect its interests,” the statement issued by the company added.
The company said it will defend itself “vigorously” in the case and against any other Indian tax allegations, using all channels available.