You are here
Home > Latest Posts > News > Nokia News > Foxconn willing to buy Nokia’s Chennai plant. Nokia gets USD 21 mn tax relief in India

Foxconn willing to buy Nokia’s Chennai plant. Nokia gets USD 21 mn tax relief in India

Nokia new logoIf it comes true, you may frankly imagine a Nokia N1 manufactured in Nokia’s now closed Chennai plant. Foxconn, the ODM that will be manufacturing and selling Nokia N1 has shown interest in buying the Nokia Chennai plant, if reports have to be believed.

Earlier reports had Indian manufacturer Lava reportedly in talks with Nokia to buy the plant and seems they have already visited the plant to do the assessment. With Foxconn ready to invest USD 2 Billion in India though, it may emerge as the likely buyer, given Nokia-Foxconn partnership for Nokia N1.

The tax issue, which forced the plant out of Nokia-Microsoft deal still needs to be sorted out though. But, given the new government’s tax stand, Nokia may be hopeful of getting the asset freeze lifted in near-future. As per ET’s report,

The telecom and IT ministry has proposed to the revenue department that Nokia be allowed to sell the plant, currently frozen in a tax dispute, without passing on the legal liability to the buyer, people familiar with the matter told ET.

In a related development, Chennai High Court has provided a favorable ruling to Nokia by setting aside a Rs 131 crore ( 21 million USD) tax claim by Tamil Nadu taxes department. This comes as a relief to Nokia.

The judge added that the orders were based on irrelevant considerations and in violation of the principles of natural justice.

According to a counsel for Nokia India, the total amount in dispute was to the tune of ₹131 crore.

On the assessments over imposition of tax on capital assets, the judge set aside the Department’s order and asked the assessing officer to make a “fresh consideration after giving full opportunity, including affording an opportunity for a personal hearing, to the petitioner”.

Source:  ET  HBL

Nayan has more than 10 years of experience of covering Technology and innovations. He is a big Nokia fan and Tech disruptions aficionado. He loves to review new cool gadgets and writing about Android, iOS, Gadgets and general Technology stuff. He has been associated with other well-known Tech sites WinCentral and GadgetOx since long. He currently sports a Lumia 950 XL and Nexus 5X. Other interests include listening to Nu-Metal Hits and Kick-Boxing. Write to him at Email: [email protected]