Income tax department informs High court about Nokia’s tax liability

Income tax department informs High court about Nokia’s tax liabilityThe Delhi High Court has been informed by the Income Tax department that Nokia India and Nokia Corporation owe it Rs 21,153 crore as total tax liability (existing and anticipated), which includes penalty during a seven-year period from 2006-2013.

I-T department has arrived at a conclusion about the amount payable by Nokia on the basis that the mobile manufacturing firm does not discharge its TDS liability on royalty payments and is not entitled to any deduction under tax laws for operating from a special economic zone (SEZ).

I-T department has made its submission in its reply to Nokia's plea for unfreezing of its assets in India prior to its $7.2 billion deal with Microsoft.

In case TDS liability is paid and the deduction under tax laws for operating from a SEZ is available to Nokia, then its total tax liability (existing and anticipated), including penalty would be Rs 14,200 crore.

A bench of justices Sanjiv Khanna and Sanjeev Sachdeva adjourned the hearing to Tuesday on Nokia's plea when the company may have to answer the court's queries about the total investment made by it in India, dividend paid by it, quantum of purchases of raw materials, whether Nokia Corporation has been filing returns here etc.

Meanwhile, Nokia, in a statement, said that it has not been served with "any official claim". The firm said in the recent months it has seen and read about many claims from the I-T department and added that these are "without merit" and it will defend itself "vigorously" in court.

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