New Delhi, Oct 9 () : Nokia has been slapped with a further demand notice for Rs 1000 crores for 2011-2012 and 2012-2013 and has prioritized it as there is an ongoing tax dispute amidst reports of Microsoft plans to buy the Finnish company.
The IT department froze Nokia’s immovable assets since it has a Rs 2080 core demand and that the assessment for 2013 was going on. Nokia claimed that it did not get any such notice from IT. Nokia claims that all dealings are above board and within the law but will fight the cases charged against it.
IT department pointed out that the Finnish company Nokia did not inform the Chennai tax authorities before moving the dividend funds to the parent company. In view of this, IT dept put all tax-related cases of Nokia on a fast track. The mobile maker has been told not to sell or transfer ownership rights of the immovable and movable assets in India as the IT department feared that it would do so in the wake of Microsoft buying the parent company and also whether it would be able to cover the liabilities arising after the tax dispute is cleared.
The income tax authorities had frozen bank accounts totalling 15. The company went to court questioning the IT order. The court not only ratified the order saying that IT laws did have provisions to do so and further ordered that no money can be transferred abroad without giving the IT assessing officer a notice of two days before sending it.
Dividends cannot be transferred without court nod. It allowed the company to receive money through loans and advances and it should be deposited in permitted bank accounts. Nokia did not deduct 10% under the TDS for payments made as royalty for use of software of the parent company.
Nokia has denied reports that it was going to shift the Chennai plant operations to Vietnam after the tax dispute. In India it was the number one in mobile phone segment but Samsung has overtaken it.