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.
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.
