The Delhi High Court on Monday asked Nokia to give details of the tax the company has so far paid in India. The company had filed a plea in the court to revoke the order to freeze its immovable assets by the tax authorities.
The next hearing has been set for December 9. Nokia wants the freeze on its factory in Chennai removed by December 12 in order to meet the deadline for transferring assets to Microsoft as part of a global deal.
“Nokia would like to highlight that today’s hearing was about the unfreezing of the assets, and not the final hearing on the ongoing tax issue. Nokia will continue to cooperate with the government and the tax authorities on the ongoing tax case,” said Poonam Kaul, Director-Communications, Nokia IMEA.
“Nokia calls on the Indian Government and tax authority to work with urgency so that the uncertainty about the site’s future can be dispelled before the deadline of December 12,” she added.
Nokia had agreed to pay part of the Rs 4,000-crore claimed by the tax authorities as an interim measure. But this offer has not been accepted by the Tax Department.
According to agency reports, the court asked Nokia’s counsel a number of questions including whether the company had changed its stance on manufacturing phones in India.
“Why did you transfer Rs 3,500 crore abroad? Was it not your intention not to keep liquid assets here? You had Rs 4,100 crore cash here (dividend and tax combined). You repatriate it,” the Bench observed.