Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: list of goods taxed at 4% :: TDS :: VAT Audit :: VAT RATES :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS
 
 
General »
 FinMin wants RBI to lower rates, boost domestic demand
 Employees may have to bear the GST burden on benefits
 Advance tax payout by top cos grows just 2% in Sept quarter
 Why abolishing personal income tax may not be a good idea
 Questions about the GST cess
 How to prepare for the looming tax-extension deadline
 Income tax: Gratuity for employees raised to Rs 20 lakh; here is how you will benefit
 Haryana to set up scrutiny panel on GST benefits
 Waive certain taxes for companies in insolvency proceeding
 I-T department to appoint 7600 more tax return preparer scheme to cover entire country
 All eyes are on GST as Centre plans higher social pension

Nokia invokes India-Finland bilateral treaty to solve tax row
May, 15th 2014

With tax authorities pressing with over Rs 21,000 crore in unpaid dues, Finnish telecom major Nokia has invoked the Bilateral Investment Promotion and Protection Agreement (BIPA) India has with Finland to resolve the dispute.

Nokia late last month wrote to Prime Minister invoking dispute settlement clause in the India-Finland BIPA to settle the row that had led to its Chennai plant being left out of the over $7.2-billion deal with Microsoft.

The treaty provides for amicable conciliation proceedings and arbitration under local and the United Nations Commission on International Trade Law (UNCITRAL).
"Nokia is keen to work with authorities in India to resolve the tax disputes. As one of our actions, Nokia has sent a letter under Finland India Bilateral Investment Treaty (BIT) to the Prime Minister of India. The letter seeks for amicable resolution of the current tax disputes," a Nokia spokesperson said.

Nokia, which last month completed sale of its handset business to Microsoft for over $7.2 billion, could not sell its Chennai manufacturing plant to the software giant as it is embroiled in the tax dispute with the Income Tax Department and the Tamil Nadu Government.

The company had approached the Prime Minister's Office (PMO) last month with the request.

However, BIPA clauses state that if a dispute between the country and the investor cannot be settled amicably within 3 months, the investor can approach local courts or seek international conciliation under UNCITRAL Conciliation Rules for its resolution.

The party can also approach the International Centre for Settlement of Investment Disputes or approach an adhoc arbitral tribunal under the Arbitration Rules of UNCITRA.
On the status of request made by the Finnish government last year to consider resolving the tax row under mutual agreement procedure, Nokia said: "Both the governments started the mutual agreement process (MAP) with an aim to resolve double taxation as per the provisions of India - Finland double tax treaty and negotiations are still on."
The application for negotiated settlement of the tax dispute was filed under the Double Taxation Avoidance Agreement (DTAA) between India and Finland. .

The mutual agreement process (MAP), which is a part of DTAA, provides for an alternative mechanism for resolution of dispute.

The government, however, is not bound to accept the request under MAP and it had earlier rejected a similar request in the case of Vodafone, which is also facing a tax dispute with the government.

Law firm Khaitan & Co Partner Sanjay Sanghvi said: "While this is a significant development, I believe government will first examine whether this withholding tax related dispute can be a subject matter of consideration under India-Finland investment protection agreement and whether this agreement will override the provisions of Indian income tax law."

In March this year, the Tamil Nadu government served a Rs 2,400 crore notice on Nokia, saying the firm sold products from the Chennai plant in the domestic market instead of shipping them overseas.

Nokia is also fighting a Rs 21,000-crore claim by the Income Tax Department over royalty payments made to its parent company in Finland.

The Supreme Court ordered Nokia India on March 14 to give a Rs 3,500 crore guarantee before it transfers the Chennai plant to Microsoft, which affected the firm's deal with Microsoft that also involved transfer of the plant.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions