The interrogation of Price Waterhouse and Company officials by the Income-Tax Department in connection with the Nokia’s Rs 2,500-crore tax default case is almost over.

The investigation wing of the department will now start interrogating Nokia officials.

Nokia India Managing Director P. Balaji visited the department this morning, said a senior department official on condition of anonymity.

Price Waterhouse is the auditor for Nokia. Two officials of the audit firm were questioned today and two more are to be interrogated tomorrow on their role in tax evasion.

The investigation of Nokia officials is likely to go on for a couple of days, he said.

According to the department, in the last six years, Nokia’s Indian subsidiary has been downloading software from its parent firm in Finland to manufacture mobile handsets worth Rs 25,000 crore from the Sriperumbudur plant.

Royalty is paid for this software, and this in turn attracts a 10 per cent tax deduction at source, which is worth Rs 2,500 crore, and was not paid by Nokia to the department.

(This article was published on January 17, 2013)
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