I-T survey on Nokia justified, say officials

Officials found that the company was indeed not deducting tax on the payments that it makes to the parent company in Finland

The Income Tax Department has got some prima facie case against the mobile handset manufacturing firm Nokia India, according to sources from the department. The Department has concluded its survey based on information that the company was not deducting tax on the payments that it makes to the parent company in Finland.

"The survey ended at around 6'o clock today morning and what we expected was right," said an official from the Department on condition of anonymity. The official confirmed that there is a prima facie case against Nokia, but refused to reveal more on it at this point of time.

The I-T officials are expected to conclude various formalities including quantifying the default payment before coming up with an official statement, which is expected to come out by today evening, added department officials. It is to be noted that the survey started on Tuesday morning and officials said that if its expectations goes right, then it will result in about Rs 2,500-3,000 crore of tax collection for past seven years, 2005 onwards.

Confirming the visit of I-T department officials in its manufacturing unit, Nokia India on Tuesday said that, "Nokia is fully cooperating to ensure they get the necessary information to help in their inquiry."