The Income Tax department in the month of March 2013 served a 2000 crore notice Rupees on Nokia for suspected evasion of taxes in its business transactions in the country.
However, an interim stay was granted by Delhi High Court after the mobile phone manufacturing company filed a petition challenging the order.
The department had on 21 March 2013 asked the firm to submit the amount of 2000 crore Rupees in about a week's time, I-T department.
The company has confirmed receiving an order from Indian tax officials. Nokia restates its position that it is in full compliance with local laws as well as the bilaterally negotiated tax treaty between the governments of India and Finland, and will defend itself vigorously.
The notice has been issued by the I-T department after it completed its investigation and had conducted a survey operation on the company's factory in Chennai and offices in Gurgaon, Haryana, earlier this year.
The tax evasion, according to these sources, relates to royalty payment which is made against supply of software by the company's parent company which attracts a 10 per cent tax deduction under the Tax Deducted at Source (TDS) category.