Nokia Files Writ Petition in Madras High Court

nokia-tax-caseNokia on Friday said it had filed a writ petition in the Madras High Court against the sales tax department of Tamil Nadu. The sales tax department of Tamil Nadu earlier this week had moved the court to assess sales tax on the export of devices from Nokia’s Chennai plant.

Nokia said it considers the claim by Tamil Nadu sales tax department is completely without merit. It also said that such claim counters the domestic laws of the country.

As per Indian law, exports are exempt from tax but the local government says Nokia does not export the devices that are manufactured in the company’s Chennai manufacturing plant.

“It is absurd that the Tamil Nadu tax authority is now claiming that devices made in Chennai were not exported and were instead sold domestically in India,” said Nokia in its petition.  “We contend that this allegation has no basis in reality whatsoever; it could easily be rebuffed by a check of documentation provided to various governmental departments including Customs,” the company added.

In the petition the company said that it has proved consistently that devices produced at Chennai are exported abroad. “Indeed, the company has been regularly assessed and audited by the tax authorities since 2006 without incident, and it has also won numerous export awards from governmental organizations,” it added.

Nokia also said that it will defend the case vigorously.

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