The Income Tax (I-T) Department has issued another tax notice to Nokia India for dispute relating royalty payments to the parent company.
The department, in 2013, had issued a notice to Nokia India to pay Rs 20 billion in tax for violation of withholding tax norms since 2006 while making royalty payments to its parent company in Finland. This tax notice is being contested in Income Tax Appellate Tribunal following a petition by Nokia.
Meanwhile, Nokia India is seeking inclusion of the fresh tax notice in the ongoing negotiations between India and Finland under the mutual agreement procedure (MAP) to resolve the Rs 20 billion tax issue. The government officials of two countries are soon expected to meet to decide on the course of action.
