Tax case: SC asks Nokia to sumbit valuation of Indian asset
March, 14th 2014
The Supreme Court today said that it wants to find some sort of an amicable solution that is acceptable to both Nokia and the Income Tax (I-T) department and that it wants to protect the interests of both the parties.
For this, Nokia has been asked to submit a report of valuation of its India entities because the Supreme Court wants to make sure that even after the Microsoft deal goes through, there is sufficient amount that can secure the interests of the I-T department. Once Nokia comes back with the valuations, an upfront amount they said approximately would be in the range of Rs 2700-3000 crore for its India operations, a view is going to be taken up by the Supreme Court.
The I-T department reiterated that there is at least tax liability of Rs 10000 crore against Nokia and that the company must be asked to submit a bank guarantee and not just an undertaking.
It also wanted Nokia Finland to submit an assurance. To which the Supreme Court said that Nokia Finland, which is a holding company cannot be forced to protect the interest of the subsidiary.
The apex court also pointed out that Rs 3500 crore, which was paid by Nokia India to Nokia Finland by way of dividends cannot be brought back simply because it is the right of the subsidiary to pay dividend to the holding company.