Nokia’s problems have just increased after the Tamil Nadu tax authorities slapped a Rs 2,400 crore notice on them. The Hindu reported that the tax department fined Nokia because the devices manufactured at the Chennai plant were not exported and were sold domestically instead.
According to The Hindu’s sources, the VAT department of TN is now going to assess sales tax at the facility in Chennai. Presently, the notice that has been served to Nokia is for Rs 2,400 crore as per the tax department.
“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,” the company said in a statement.
Nokia has filed a writ to the High Court in Madras and has decided to contest the tax authorities’ claim, according to a company spokesperson.
“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,” the company added.
