A senior Income-tax official, who requested anonymity, told ET, "We have submitted a 150-page interim report to our office in Delhi," he noted. "Nokia will have to pay Rs 13,000 crore before March 31." Of the Rs 13,000 crore, Rs 3,000 crore is for tax violations and Rs 10,000 crore for transfer pricing issues, the source said. Over the past few weeks, officials from Nokia and audit firm Price Water and Company, the Indian arm of Pricewaterhouse-Coopers, were being questioned in Chennai.
Earlier this month, the Income-tax Department raided the factory and offices of the Finnish company's Indian subsidiary in what it called a 'survey' operation. Covered under this operation were its factory in Sriperumbudur, near Chennai, and its offices in Gurgaon, Haryana.
The department has alleged that the company changed its accounting policy and was also in the process of reorganising the existing business model to bypass certain direct and indirect tax liabilities.
The department has also alleged that Nokia has not made tax payments for software supplies. Two weeks ago, the income-tax department had said that the role of audit firm Price Water and Company in relation to the alleged tax defaults by handset manufacturer Nokia India is also being probed.
A statement issued by Nokia said, "Nokia is fully cooperating with the Indian tax authorities. We are duly responding to all queries raised by them and extending our full support in completing the investigation."
The Nokia plant employs over 9,000 people, 55 per cent of whom are women.