Nokia tax issue may be headed for a diplomatic solution

The Rs. 2,000-crore Nokia tax issue may be headed for a diplomatic solution as the government is reading for an out-of-court settlement. It is veering around the idea of imposing a penalty on Nokia rather than paying up the pending taxes which it owes here supposedly.

The Finnish government
 has taken up the matter at a diplomatic level with the Indian embassy there indicating that the dispute could risk Finnish investments into India.
The ministry of external affairs is spearheading the matter through its mission there by working out a mechanism under the Bilateral Investment Promotion and Protection Agreement (BIPA) that India has with Finland along with the ministry of finance. BIPA with Finland came to force on April 2003.

“We have told them (finance ministry) to look into the issue. We have given Nokia the option to either fight it out in the court or pay up penalty for not paying the required taxes. If the matter can be settled out of court then why not try it out?” a top MEA official told Business Standard.

The official also added that MEA has asked finance ministry to fasten the process as “these issues do deter investments.” India and Finland also has a Double Taxation Avoidance Agreement (DTAA) under which the finance ministry is also trying to work out a solution through the Mutual Procedure Agreement provision under the extant treaty.

When contacted, Poonam Kaul, director of communications at Nokia India said the company was not in a position to comment on any developments that take place on the matter.

Earlier in a press statement Nokia had stated that its operations are “fully aligned with domestic and international tax rules as well as the bilaterally negotiated tax treaty between the Governments of India and Finland. Nokia has also said it will defend itself vigorously. Given that this case is ongoing, Nokia will not comment further at this stage.”

Nokia has two manufacturing units here in Sriperumbudur and Kolkata. In March this year, the handset maker was issued a notice by the Income Tax Department demanding payment of taxes for a period of six years starting from 2006-07.

The taxman asked Nokia India to pay around Rs.2,000 crore for not paying tax on the royalties it made to its Finland-based parent company Nokia Oyj for downloading software in its mobile devices that were manufactured in its Sriperumbudur facility since 2006. Royalty is paid on downloading software, which attracts a 10 per cent TDS (Tax Deducted at Source) .

Nokia challenged the matter in Delhi High Court which in turn handed over the case to the appeals division of income tax authorities. However, in May, Commissioner of Income-Tax (Appeals) dismissed the challenge. Nokia then said it would take the case back to Delhi High Court.

The company was also accused of flouting transfer pricing rules by the Income Tax Department but the penalty estimates have not yet been notified. Nevertheless, the total amount that Nokia India could be asked to pay up if both parties do not arrive at a solution, could be around Rs.12,000 crore, according to another official, who did not wish to be identified.

Nokia also has a research and development centre at Bangalore. From its Sriperumbudur unit, which has come under fire for the software download, Nokia exports mobile phones to US and Europe.

Last month, the issue was also taken up by commerce and industry minister Anand Sharma with Finnish foreign affairs minister Jan Vapaavuori and trade minister Alexander Stubb during his visit there.

There are over 120 Finnish companies present in India either through their subsidiaries, joint ventures or representative offices. Total investments made by Finland into India presently stands at $1.4 billion.

Nokia Lumia 925 spotted in leaked picture

Nokia’s London event is fast approaching, so it’s only natural that its newest device leaks on the internet before its officially announced to the world. Thanks to yet another leaked image by the notorious @evleaks, we’re able to see what appears to be Nokia’s latest handset encased in aluminum.

The Nokia Lumia 925 is expected to hit Verizon, but it might also be released as international version as well. From the beginning, the rumors have suggested that the phone may be launching with a plastic or aluminum frame around the outside of the device. However, judging from the light and dark grey 925’s in the image above, we may see aluminum instead — which isn’t bad at all.

Regardless to whatever material the phone is made of – it should be a compelling choice for those folks on Verizon looking for a credible Windows Phone option.

Nokia Lumia 925 officially announced: it’s like thinner and lighter Lumia 920 with aluminum body and new software

Nokia has officially announced a new member of its smartphone range – Lumia 925. The device is pretty much improved version of the existing Lumia 920, dumping polycarbonate for more durable (and sexier) aluminum. The new Lumia is also thinner and lighter than its predecessor, while the rest of the specs are pretty much the same — i.e. it comes with a 4.5-inch 1280×768 OLED screen, 8.7MP rear camera, 1.5GHz Qualcomm MSM8960 dual-core processor, 1GB of RAM and so on.

Unfortunately, the Xenon-based flash found in Verizon’s Nokia Lumia 928 isn’t here, but you get a whole new camera software that includes Nokia Smart Camera mode. The mentioned feature(s) allows you to capture ten images at once and edit the pictures with options like Best Shot, Action Shot, and Motion Focus for “creating the perfect high quality image.”

There’s one caveat though – while aluminum body is cool, it seems to stand in the way of wireless charging. And since Nokia wants you to get power to the Lumia 925 sans any wires, you can get a dedicated cover to keep using your Qi-based wireless charger. These covers, sold separately, are in Nokia’s usual fashion available in few colors, including white, black, yellow and red.

Finally, the availability and pricing information – the Nokia Lumia 925 will start selling in UK, Germany, Italy, Spain and China in June, followed by the US and a number of other markets. The price is set at around 469 EUR ($608) before taxes and subsidies, though country-specific pricing and availability will be announced locally.

Rumor: PureView Camera Touting Nokia Lumia 928 Coming to Verizon?

Nokia

Verizon may be getting the Nokia Lumia 928 smartphone, thanks to a leaked image from @evleaks. The leaked image shows that the unit will indeed take advantage of Verizon’s 4G LTE network, running on the Windows Phone 8 OS and touting Carl Zeiss optics and a Xenon flash.

Rumored specs for the Nokia Lumia 928 are a 4.5-inch screen with a Super AMOLED screen with a 1280×768 pixel resolution, a 8.7 megapixel PureView camera, 1GB of RAM and 32GB of internal storage, a 2,000 mAh battery, and will more than likely be available in a multitude of colors akin to the rest of the Nokia Lumia line.

The design of the unit does not convey a huge departure from other Nokia Lumia phones, bearing the most resemblance to the Nokia Lumia 900. It does look a bit thicker than the Lumia 900 however, and has a boxy frame as opposed to the Lumia 900′s curved edges. The unit also appears to have an upgraded rear speaker as well. No pricing or availability have yet to be announced for the Lumia 928, but if this rumor proves to be true, we’ll most definitely see official announcements coming in the future.