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Nokia files writ against new Tax claim by Tamil Nadu state government.

nokia logo NPUNokia has today released a press statement in regards to  a new “Tax claim” against it in India, this time by the Tamil Nadu state government, though. Chennai plant was built on Government provided SEZ land and you may know that companies manufacturing and exporting items from SEZ enjoy tax benefits. But, seems the Tamil Nadu tax department is now accusing Nokia of selling manufactured devices domestically in India instead of exporting them. Nokia has filed a writ against this claim and maintains that by checking and verifying relevant documents this claim can be rebuffed easily.

Nokia has today filed a writ to the Madras High Court to contest a claim from the Tamil Nadu tax department, which has moved to assess sales tax on the export of devices from the company’s Chennai facility.

Nokia considers the claim to be completely without merit and counter to domestic tax laws. In India, exports are by law exempt from tax, and Nokia has proved consistently that devices produced at Chennai are exported abroad. Indeed, the company has been regularly assessed and audited by the tax authorities since 2006 without incident, and it has also won numerous export awards from governmental organisations.

It is absurd that the Tamil Nadu tax authority is now claiming that devices made in Chennai were not exported and were instead sold domestically in India. We contend that this allegation has no basis in reality whatsoever; it could easily be rebuffed by a check of documentation provided to various governmental departments including Customs.

Nokia will defend itself vigorously in this matter.

Source

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Nayan

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]

http://www.nokiapoweruser.com
  • All I know is that my Asha 311 says that its manufactured in India. So how can they say that devices are not being sold in India? 😛

  • troll

    WSJ has an article warning companies not to do business in India because of tax issues. It says there are 18 companies in tax fights with the government.

    • The most probable reason is that firstly the Tax Departments sleep.. When companies take advantage of this, they come out and start suing them. Why don’t they keep regular checks and sort the issues when they are just starting to build up? Anyways, that’s how my India is 😛

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