Nokia's tax issues in India get deeper

Written by Andre Yoskowitz @ 31 May 2013 7:34 User comments (1)

India has now demanded that Nokia pay 2.09 billion rupees ($40 million USD) in taxes, claiming the company wrongfully claimed an exemption on software exports.

Nokia, for its part, says the claims have no merit, but they are fully cooperating with Indian tax authorities on the matter.

The new demand is in addition to a recent raid on Nokia's phone manufacturing facility in the nation and its demand for 20.8 billion rupees in back income tax and penalties. Nokia denied those charges, as well.

Indian officials have been increasingly cracking down on alleged tax evasion by multinationals, and big caps like Vodafone, Shell and Cadbury have all received similar demands.

The new demand revolves around a 12 percent service tax that Indian companies can use on software that is developed and used in India. If you export it, you do not have to pay taxes on it. Tax officials allege that Nokia exported the locally developed software to itself, and then used it in products manufactured in India.

Tags: Nokia India

<The Moto X is real, will be built in U.S. >HTC cancels its full-sized Windows RT tablet

1 user comment

19.6.2013 02:11

pmshah

Send private message to this user

Member

"The new demand revolves around a 12 percent service tax that Indian companies can use on software that is developed and used in India."

The sentence does not make sense. The words "can use" should actually be "have to pay".

It incidentally so happens that service tax is levied on charges covering services. Grant of software license - as it actually is and not a sale - falls under this category and is taxable. BTW there is ZERO import duty on software. So this is an out right circumvention of tax.

I remember in the past HP used to sell their inkjet printers at throw away price to HP India since they were being so called - "given away for free" with their PCs. Indian customs took a dim view of this claiming circumvention of duty and charged them duty on actual price the printers were being sold to third parties which represented the real price of the printers.

Watch out Apple ! I wonder what did you pay on iPhone 1 which was fully developed in India !

Comments have been disabled for this article.

	Android 16 will launch sooner than expected (01 Nov 2024 6:45) Google announced that upcoming Android 16 will break the traditional once-a-year cycle of major Android launches. Next Android is poised to launch in Q2 of 2025, so Android 16 should ship before end of June, 2025.
	Winamp ends its "open source" project that wasn't really open source (20 Oct 2024 11:12) Less than a month after the legendary MP3 player Winamp made its source code public, the company has made a sudden U-turn and removed its code from distribution. 2 user comments
	Winamp released its source code - but didn't go open source (25 Sep 2024 12:38) The source code of Winamp has now been officially released. However, it hasn't become a pure open-source project, as its licensing terms prohibit the creation of new, different versions.
	Does your phone rattle? Here's why it happens (25 Aug 2024 8:30) When you shake your phone and hear a light rattle, clatter, or jingle, it's likely not broken. The culprit is probably the optical image stabilization (OIS) system in your phone's camera, meaning everything is functioning as it should. 2 user comments
	CEO of Messaging App Telegram Arrested in France (25 Aug 2024 7:12) French authorities have detained Pavel Durov, CEO of the messaging service Telegram, amidst an ongoing investigation to determine whether Telegram moderates its platform adequately. 1 user comment

	Does your phone rattle? Here's why it happens When you shake your phone and hear a light rattle, clatter, or jingle, it's likely not broken. The culprit is probably the optical image stabilization (OIS) system in your phone's camera, meaning everything is functioning as it should. 2 user comments
	Guide: Phone battery drains quickly - how to fix (iPhone / Android) In this guide, we go through the most typical reasons for rapid battery drain with phones, and look at potential reasons or solutions.
	Guide: Is Your Wi-Fi Sluggish or Slow? Here's How to Fix Do you have problems with you Wi-Fi? Slow connection or is it cutting off constantly? This guide aims to remedy these problems. 1 user comment
	GUIDE: Wi-Fi speeds are slow? Here are some tips Having problems with Wi-Fi speed and stability at home? Here are some tips to follow to alleviate the issues. 1 user comment
	What happens if you don't update Android? Sometimes it can be tempting to avoid updating to a new Android version. What happens if you decide to delay major updates to the OS?

Nokia's tax issues in India get deeper

1 user comment

Latest news

Reviews

Guides

News archive

Subscribe

Sections:

Follow us:

	Roborock S8 MaxV Ultra review - obstacle avoidance doesn't work as it should, otherwise almost perfect robot vacuum We put the Roborock S8 MaxV Ultra through a very, very long review process. The $1800 mopping robot vacuum is almost perfect, but its obstacle avoidance was surprisingly bad, considering the price - and compared to its competitors.
	Sharge x OnePlus Pouch review: Beautiful power bank that supports SuperVOOC charging In our review, we take a look at Sharge's power bank that supports OnePlus SuperVOOC quick charging technology as well as standard USB PD charging. It has small design flaws, but despite those, the Pouch is very nice product. 1 user comment
	Roomba Combo j7+ review - Clever trick allows robot vacuum finally to tackle home with rugs and carpets Roomba Combo j7+ is the very first Roomba model to combine robot vacuum with mopping features. And Roomba Combo j7+ does all that with a very clever trick, which tackles the problem with mopping and carpets. But is it any good? We found out.