Finland raises Nokia's tax issue with India

India has raised tax demand of Rs 2,080 crore before Finnish handset major Nokia which the company has contested

Finland today raised with India the tax issues that Finnish mobile handset maker Nokia is facing here and expressed hope that there would be a positive resolution to the dispute.

 

"We discussed world economics, Indian economic development, Finnish economic development. We discussed the WTO round in Bali.

 

"And we also, of course, discussed some company issues including Nokia," Finland's Minister for European Affairs and Foreign Trade, Alexander Stubb told reporters here after a meeting with Commerce and Industry Minister Anand Sharma.

 

Indian authorities have raised tax demand of Rs 2,080 crore before Finnish handset major Nokia which the company has contested.

 

As per sources, the Income Tax Department is gearing up to issue fresh demand notices for payment of taxes to the tune of Rs 1,000 crore pertaining to assessment years of 2011-12 and 2012-13.

 

When asked about his expectations on the Nokia tax case, Stubb said neither he nor the Commerce Minister (Sharma) are to decide on the issue that is being dealt with normal rule of law in the Indian court, but expressed hope for positive resolution in the matter.

 

"On the top of that we have tax authorities, in other words, Ministry of Finance dealing with them. But it was very good to get the arguments on both sides.

 

"And I am quite confident that the issue will be resolved positively," Stubb said.

 

The Finnish Minister did not comment on Nokia's threat to Indian authorities of exiting from India in case the problem is not resolved.

 

"You should ask that to Nokia," Stubb said.