I-T dept to send another notice to Nokia: Sources

There is more tax trouble ahead for cellphone maker Nokia. CNBC-TV18 learn from sources that, with a case pending in the Delhi High Court, the tax department is now getting ready to send another tax notice to Nokia- this time to the parent organisation based in Finland. CNBC-TV18's Aakansha Sethi reports.

The I-T department says that Nokia had earned income on software from its facility in Chennai to the tune of about of USD 3.26 billion. The tax department had already sent a notice for non-deduction of tax deducted at source (TDS) on this amount to Nokia India, which is a tax case of Rs 2500 crore. The case will be heard in the Delhi High Court tomorrow. Also read: Struggling Nokia shuts Shanghai store in bid to save costs
Moreover, the fact that Nokia Finland earned this income, and did not pay a tax of 10 percent for royalty income on this means that it adds up to a tax liability of about Rs 1700-1800 crore for which the tax department is are shortly going to send a tax notice.
Nokia Finland claims that it does not have an office in India, so it remains to be seen if the demand will be served in India or whether it will be sent abroad.  However, since returns are filed here Nokia Finland would be liable to paying tax here.
In a few days one can expect the notice to be sent to Nokia Finland.