NDTV Profit

Income tax department raids Nokia's Chennai, Gurgaon units

Finnish phone maker Nokia said tax officials raided its manufacturing unit in Chennai, India, on Tuesday.
New Delhi:

The income-tax department officials today conducted a raid on the Chennai and Gurgaon premises of Finnish cellphone major Nokia on charges of alleged tax evasion.

The raid was conducted under section 133 of the I-T Act, the Press Trust of India reported quoting sources.

NDTV's independent sources have said that the raids are in connection with the parent company supplying components to its Indian unit at a higher price so that the profit of the latter gets reduced, and as a result less tax has to be paid.

The undisclosed income is likely to be higher than Rs 2,000 crore, the sources added. The raid is also linked to the tax payable on royalties to the parent company for seven years, the said.

"Earlier today, tax officials visited Nokia's manufacturing unit in Chennai. Nokia is fully cooperating to ensure they get the necessary information to help in their inquiry," Nokia said in a statement.

"As a global company, Nokia consistently fields a large and steady number of tax queries, audits and assessments. Nokia's commitment to being a good corporate citizen is firm and unwavering. We always observe applicable laws and rulings in the countries where we operate. This has been a core principle of our operations in India, where Nokia has been present since 1995," the statement added.

A team of about 30-40 I-T sleuths is involved in the operation, sources said.

Nokia led Indian mobile market with 22.2 per cent market share during first half of 2012 where 102.43 million handsets were sold, a CyberMedia Research said.

With inputs from PTI

For latest news on Business, like us on Facebook and follow us on Twitter.
ALSO READ India Ranks Below China, Pakistan On This World Economic Forum Index