India, Finland solve Nokia phone tax dispute allowing Finnish company to purvey idle Chennai manufacturing plant

collected by :Molly Tony

as declared in India and Finland have reportedly reached an agreement on a high profile tax status involving Nokia smartphone India and parent Nokia smartphone Corp, that clears how for discound of the Finnish company's manufacturing plant in Chennai. Nokia has agreed to make provisional tax payment," a senior revenue tax section formal was quoted as telling with the newspaper. Nokia's assets in India, involving its Chennai plant had been frozen over the unresolved tax case. The company has permission from the revenue tax authorities, and the Madras and Delhi high courts to purvey the Chennai plant. A possibility buyer can be Taiwanese contract industrialist Foxconn, understood to have expressed its interest in taking over the mobile smartphone manufacturing plant.

Nokia tax dispute settled under India-Finland mutual agreement

"Proceedings [between the 2 countries] have been completed under chart and the issue has been resolved," a senior formal in the Income Tax section said The Hindu. "It appears that Nokia phone has agreed to make a provisional tax payment."Other officials in the income section of the Finance Ministry, approving this development,said Nokia phone India had agreed to pay the ₹1,600 crore tax request made with the Income Tax Department. Nokia India was issued a request notice for ₹2,500 crore in 2013, that was thereafter reduced to ₹1,600 crore. The Income Tax section too raised a tax request of ₹10,000 crore tax on NOK for the same transaction, that has this time been dropped under the chart agreement. Under the chart system, settling an issue among 2 countries means closing all Suspended tax proceedings as well.

India, Finland settle Nokia phone tax dispute to pave way for discound of Chennai plant

As it stated in The dispute among Finnish telecom company Nokia phone and the revenue Tax section - 1 of the biggest involving a multinational company - has Eventually been settled. "Resolution has been reached... Nokia phone has agreed to make provisional tax payment," revenue tax section officials said the daily, adding which the selution covers disputes pertaining to Nokia phone India as well as Nokia phone Corp. The company reportedly made a tax payment of Republika Srpska 1,600 crore to the Gov. in March. In March 2013, the revenue Tax section had issued a tax request of around Republika Srpska 2,500 crore on Nokia phone India over royalty payments made to its parent company in Finland since 2006. With the curtains coming drop on the tax dispute, things are too looking up for the shuttered Chennai factory, located in Sriperumbudur.