Mobile phone industry body backs Nokia

Raps TN govt demand as arbitrary violation of due process, ask CM to review

The (ICA), apex body of the mobile telecom industry, says it supports the stand of Finnish telecom major on the Rs 2,400 tax-dues notice it got from the Tamil Nadu government last week.

Nokia has said the notice is based on unfactual reasoning. It has petitioned the high court here.

In a telegram to state Chief Minister J Jayalalithaa, ICA's national president Pankaj Mohindroo has said: “The reputation of Tamil Nadu as a well- governed state is under attack. We are sorry to point out that some officers of your government in the (value added tax) department seem to have taken some unwarranted actions. They have issued demands of huge VAT and hundreds of crores in export cases. This is unconstitutional and total violation of the due process of law.”

The notice has been levied on production from Nokia’s unit at Sriperumbudur, meant for export. ICA has said exports do not attract VAT anywhere in the world, including India. Especially so in a Special Economic Zone, where the entire production is to be exported under a customs bond. Exports are under the central government, while local sales are with the state VAT department.

The tax notice says the output from Sriperumbudur was being sold for years in the domestic market, instead of being exported, a charge Nokia has ci contended is verifiable as absurd. ICA agrees, saying the state action is “total violation of due process, without examination of export records which are available with statutory bodies and without a showcause notice..”

Urging the government to withdraw the notice, ICA has said: "The consequences of these will recoil on your government and leave you open to charges of lawlessness. The impression of good governance in Tamil Nadu will be sullied.”

Nokia is already fighting an alleged Rs 21,000-crore tax evasion case with the (Centre’s) income tax Department in various courts in Delhi, including the Supreme Court. The TN notice, signed by an additional officer from the sales tax department, says the company has to pay for the years 2009-10, 2010-11 and 2011-12.

Separately, in the labour dispute between company and management at the Sriperumbudur facility, the union leaders are to meet the state labour commissioner on Monday. The decision followed a meeting of the workers to discuss a recent Supreme Court order that said Nokia had to provide a Rs 3,500-crore guarantee before transferring the factory to Microsoft.

image
Business Standard
177 22
Business Standard

Mobile phone industry body backs Nokia

Raps TN govt demand as arbitrary violation of due process, ask CM to review

T E Narasimhan  |  Chennai 



The (ICA), apex body of the mobile telecom industry, says it supports the stand of Finnish telecom major on the Rs 2,400 tax-dues notice it got from the Tamil Nadu government last week.

Nokia has said the notice is based on unfactual reasoning. It has petitioned the high court here.



In a telegram to state Chief Minister J Jayalalithaa, ICA's national president Pankaj Mohindroo has said: “The reputation of Tamil Nadu as a well- governed state is under attack. We are sorry to point out that some officers of your government in the (value added tax) department seem to have taken some unwarranted actions. They have issued demands of huge VAT and hundreds of crores in export cases. This is unconstitutional and total violation of the due process of law.”

The notice has been levied on production from Nokia’s unit at Sriperumbudur, meant for export. ICA has said exports do not attract VAT anywhere in the world, including India. Especially so in a Special Economic Zone, where the entire production is to be exported under a customs bond. Exports are under the central government, while local sales are with the state VAT department.

The tax notice says the output from Sriperumbudur was being sold for years in the domestic market, instead of being exported, a charge Nokia has ci contended is verifiable as absurd. ICA agrees, saying the state action is “total violation of due process, without examination of export records which are available with statutory bodies and without a showcause notice..”

Urging the government to withdraw the notice, ICA has said: "The consequences of these will recoil on your government and leave you open to charges of lawlessness. The impression of good governance in Tamil Nadu will be sullied.”

Nokia is already fighting an alleged Rs 21,000-crore tax evasion case with the (Centre’s) income tax Department in various courts in Delhi, including the Supreme Court. The TN notice, signed by an additional officer from the sales tax department, says the company has to pay for the years 2009-10, 2010-11 and 2011-12.

Separately, in the labour dispute between company and management at the Sriperumbudur facility, the union leaders are to meet the state labour commissioner on Monday. The decision followed a meeting of the workers to discuss a recent Supreme Court order that said Nokia had to provide a Rs 3,500-crore guarantee before transferring the factory to Microsoft.

RECOMMENDED FOR YOU

Mobile phone industry body backs Nokia

Raps TN govt demand as arbitrary violation of due process, ask CM to review

Raps TN govt demand as arbitrary violation of due process, ask CM to review The (ICA), apex body of the mobile telecom industry, says it supports the stand of Finnish telecom major on the Rs 2,400 tax-dues notice it got from the Tamil Nadu government last week.

Nokia has said the notice is based on unfactual reasoning. It has petitioned the high court here.

In a telegram to state Chief Minister J Jayalalithaa, ICA's national president Pankaj Mohindroo has said: “The reputation of Tamil Nadu as a well- governed state is under attack. We are sorry to point out that some officers of your government in the (value added tax) department seem to have taken some unwarranted actions. They have issued demands of huge VAT and hundreds of crores in export cases. This is unconstitutional and total violation of the due process of law.”

The notice has been levied on production from Nokia’s unit at Sriperumbudur, meant for export. ICA has said exports do not attract VAT anywhere in the world, including India. Especially so in a Special Economic Zone, where the entire production is to be exported under a customs bond. Exports are under the central government, while local sales are with the state VAT department.

The tax notice says the output from Sriperumbudur was being sold for years in the domestic market, instead of being exported, a charge Nokia has ci contended is verifiable as absurd. ICA agrees, saying the state action is “total violation of due process, without examination of export records which are available with statutory bodies and without a showcause notice..”

Urging the government to withdraw the notice, ICA has said: "The consequences of these will recoil on your government and leave you open to charges of lawlessness. The impression of good governance in Tamil Nadu will be sullied.”

Nokia is already fighting an alleged Rs 21,000-crore tax evasion case with the (Centre’s) income tax Department in various courts in Delhi, including the Supreme Court. The TN notice, signed by an additional officer from the sales tax department, says the company has to pay for the years 2009-10, 2010-11 and 2011-12.

Separately, in the labour dispute between company and management at the Sriperumbudur facility, the union leaders are to meet the state labour commissioner on Monday. The decision followed a meeting of the workers to discuss a recent Supreme Court order that said Nokia had to provide a Rs 3,500-crore guarantee before transferring the factory to Microsoft.
image
Business Standard
177 22

More News

  • Abheek Barua & Bidisha Ganguly Abheek Barua & Bidisha Ganguly: 'Decoupling' from China
  • Tourism Ministry holds roadshow in Shanghai to attract Chinese investment Tourism Ministry holds roadshow in Shanghai to attract Chinese investment
Widgets Magazine

Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard