Nokia has filed a writ to the Madras High Court protesting the Rs 2,400 crore tax claim from the Tamil Nadu government. The government had alleged that Nokia was masking devices sales within India as exports and not paying sales tax on these devices. The company said in a statement that it considers this claim to be completely without merit and counter to domestic tax laws. It added that these claims could be rebuffed by checking documentation provided to various governmental departments including the customs department. "In India, exports are by law exempt from tax, and Nokia has proved consistently that devices produced at Chennai are exported abroad. Indeed, the company has been regularly assessed and audited by the tax authorities since 2006 without incident, and it has also won numerous export awards from governmental organisations," the statement read. Nokia is also fighting other cases related to its purchase by Microsoft. India's Supreme Court, in a broader tax dispute regarding the Chennai plant, had last week ordered the Finnish company to give a Rs 3,500 crore guarantee and waive some of its rights to legal defence before it transfers the factory to Microsoft. A Nokia spokesman had told Reuters that it was still considering its options over the Supreme Court ruling regarding the plant. Beating the investors away On one hand, the Indian government is trying to encourage electronics companies to manufacture gadgets in India. It is offering Modified Special Incentive Package (M-SIPS) as part of the National Electronics Policy…
