ICAI seeks details on Nokia tax issue from income tax department

ICAI seeks details on Nokia tax issue from income tax department. Accounting regulator ICAItoday said it has sought downloaddetails from the director general income tax (investigation), which is probing the alleged Rs 2,080 crore tax evasion by the finnish mobile maker Nokia.

After it received the details on the case, the Institute of Chartered Accountants of India (ICAI) said it would decide if the issue is in anyway related to auditing or accounting malpractice.
ICAI President Subodh Kumar Agrawal told reporters that after noting media reports on Nokia’s tax issue it had written to income tax commissioner, Chennai.   “The tax department has now told us to write to the Director General investigation…We have now written to the them,” he added.

A tax demand notice was issued on Nokia’s India unit on March 15.  The notice issued by Income Tax Department alleged tax evasion by Nokia on royalty payments made against supply of software by the company’s parent firm.

Royalty payments attract a 10 percent tax deduction under the Tax Deducted at Source (TDS) category.

Last week, authorities dismissed Nokia’s appeal against an income tax demand of Rs 2,080 crore. The Commissioner of Income-Tax (Appeals) rejected Nokia’s challenge for the tax demand notice for five fiscal years starting 2006-07.  The company had said it was examining all options, including going to the Delhi High Court in appeal.

source : http://economictimes.indiatimes.com