Nokia faced a new tax bill in India, this time slapped by the Income tax officials of the state in which Chennai plant is located. Nokia has filed a writ against this new tax claim, but this time around it hasn’t to fight it alone, as it is getting strong support from Indian Cellular association. ICA has termed this step as “unconstitutional” and “totally in violation of the due process of law”.
A day after the Tamil Nadu Government slapped a Rs.2,400 crore tax notice on Nokia, Indian Cellular Association (ICA) has termed the step as “unconstitutional” and “totally violative of the due process of law”. It has urged Chief Minister Jayalalithaa to reverse the “unwarranted” actions of her officers.
“We are writing this letter to you in extreme distress. An urgent appeal to you…to kindly ensure that the process of law is not vitiated. The reputation of TN as a well governed State in under attack…We are very sorry to point out that some officers of your government in VAT dept seem to have taken some unwarranted actions.
ICA has cautioned state government that this will send wrong signals to investors globally, something, which is already happening in ongoing Nokia vs Indian IT department tax tussle. ICA also has said that Sri Perumbudur factory of the Finnish mobile manufacturer was a matter great pride to Tamilians as well as Indians.
Stating that such a step would send wrong signals to investors globally, ICA President Pankaj Mohindroo said the Sri Perumbudur factory of the Finnish mobile manufacturer was a matter great pride to Tamilians as well as Indians. “It is the world’s largest mobile phone factory with unparalleled value addition and (which provides) employment to the larger community, specially young women,” he said.
The ICA has also pointed out that exports were not leviable to VAT anywhere in the world, including India, and this is specially so in SEZ where the entire production is to be exported under customs bond. “Exports are under Central Government while local sales are with State VAT dept,” it said and urged the Tamil Nadu Chief Minister to take “urgent emergent action in having the matter examined and status quo restored”.