Wednesday, 11 December 2013

Delhi High Court to rule on Nokia plant today - Times of India

NEW DELHI: The Delhi High Court ruling expected on Thursday could determine whether Nokia will be free to transfer a phone-making factory to Microsoft or pay as much as $3.4 billion (almost Rs 21,000 crore) in disputed taxes.

The Chennai plant is one of Nokia's biggest phone-making factories and was seized by authorities because of tax claims. Nokia appealed the seizure and has been trying to end the dispute ahead of the sale of its mobile phone business to Microsoft in a $7.4 billion deal.

Nokia has said it wante d the factory seizure to be lifted by December 12 for the planned transfer of the business to Microsoft.

Nokia's case is one of several tax disputes involving foreign companies in India, which has stepped up its pursuit of claims against such firms as it seeks to rein in its budget deficit.

Companies recently involved in tax disputes in India include IBM, Royal Dutch Shell, Vodafone Plc and LG Electronics Inc.

In March, Nokia was served with a tax demand of about Rs 2,080 crore ($340.45 million) for five fiscal years starting from 2006-07, according to a March 22 notice on the Delhi high court website. Including the anticipated liability, or the tax bill for the years that have not been assessed by the authorities, the total liability could rise to roughly Rs 7,500 crore, said Mohan Parasaran, who is representing the tax department.

If Nokia loses the legal battle, it may have to pay as much as Rs 21,000 crore ($3.44 billion), which includes penalties and interest, Parasaran said. He declined to give more details.



via Technology - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNFSBOvl71K17DqcjT40v46dqAEPWQ&url=http://timesofindia.indiatimes.com/tech/tech-news/hardware/Delhi-High-Court-to-rule-on-Nokia-plant-today/articleshow/27233297.cms

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