The department had on 21st March asked the firm to submit the amount of Rs 2,000 crore in about a week's time, I-T department sources said on Thursday.
The
Delhi High court has granted an interim stay of the demand after the
mobile phone manufacturing company filed a petition challenging the
order.
Nokia confirmed receiving the notice and said it is in full compliance with laws related to its business operations.
Nokia
reiterates its position that it is in full compliance with local laws
as well as the bilaterally negotiated tax treaty between the governments
of India and Finland, and will defend itself vigorously.
"In
this regard, Nokia filed a writ before the Delhi High Court last week
and on Friday, March 22 the Court has issued notice to the Income Tax
department to file its counter affidavit and has granted interim stay of
the entire tax demand raised against Nokia till further orders," a
Nokia spokesperson said in a statement.
The
IT department will soon file its reply in the Delhi High Court stating
the provisions that "enable and authorise" it to issue such a time-bound
notice, department sources said.
The
notice has been issued by the I-T department after it completed its
probe and had conducted a 'survey' operation on the premises of the
Chennai in January this year.
The
tax evasion, according to I-T department sources, pertains to royalty
payment made against supply of software by the compamy's parent company
which attracts a 10 percent tax deduction under the Tax Deducted at
Source (TDS) category.
The department has analysed the company's business statements since 2006, they said.
"Since establishing the Chennai factory in 2006, indeed since starting business operations in India
in the mid-1990s, Nokia has been scrutinized by the authorities
regularly and its policies have been validated by the Indian and Finnish
Tax authorities in the normal course of tax proceedings.
"Nokia arrived in India
18 years ago and has grown to become a market leader, contributing to
the rapid growth of the Indian economy. Nokia has invested over USD 330
million in Chennai since setting up the factory," the Nokia spokesperson
said.
The
I-T department, sources said, has got initial inputs about the
company's operation after information was gathered by its investigation
unit in Chennai.
"The
Indian people, in turn, have shown their trust in us, recently voting
Nokia the top trusted brand in the country," the Nokia spokesperson
said.
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