The Income Tax department of India has rejected the offer by Nokia India of paying an amount of Rs. 2,250 crores. The total tax liability of the company is Rs. 6,500 crores. The IT department has told the Delhi High Court that the amount offered by the mobile handset company isn’t acceptable.
Nokia came up with a strong reply saying it was for the department to determine if the amount they are being offered is fine to them or not. They can be better off even without the amount, Nokia said.
To this, the bench of justices Sanjeev Sachdeva and Sanjiv Khanna mentioned that “you (Nokia) are offering nothing”. Now the ball was in Nokia’s court and they had to come up with a reply. Advocate Harish Salve, who is looking after things on behalf of Nokia, has said that the company isn’t in a position to offer anything more than that.
He also added that the amount offered was the minimum sum that was the result of the deal Nokia had signed with Microsoft.
Nokia had also asked for lifting the stay on the transfer of the company’s assets in India. The Finnish company pointed it out that if the court doesn’t do so, that will endanger the deal that they had penned with Microsoft some days back. The deal was understood to be of about USD 7.2b.
The matter will be heard on December 9 and the court will ask for the details from Nokia regarding the amount of tax they paid here in India. Nokia will also have to answer the purpose behind paying Rs. 3,500 crores to the parent company that amounts to a dividend of nearly 18 years. The bench of the justices will seek an explanation from Nokia as to why the amount shouldn’t be brought back to India.