The Income Tax department on Friday moved the Delhi High Court seeking "directions/clarifications" of the December 12 order by which the assets of mobile phone handset maker Nokia in India were defreezed.
The agreement will result in the settlement of all patent litigation between the companies, including the withdrawal by Nokia and Apple of their respective complaints to the US International Trade Commission.
Mobile phone maker Nokia Corporation has launched a search to replace current chief executive Olli-Pekka Kallasvuo, who has been struggling to mark a place for the company in high-end smartphone market, says a media report.
Once the requisite approvals have been received, the joint venture would be primarily engaged in selling value added services for mobile devices.
Ahead of the entry of the much-awaited iPhone in India, leading mobile phone manufacturer Nokia is looking at strengthening its marketing, branding and distribution network to maintain its position in the domestic market.
"The company plans to come up with internet-based services for the rural market soon," Nokia Corporation President and CEO Olli-Pekka Kallasvuo told reporters in New Delhi. The company would also introduce these services in its mid-level mobile devices as well. The Finland-based company is looking at micro finance as a major initiative to increase mobile penetration in India from the current 26 per cent.
The company currently employs over 9,000 people and has 95,000 outlets with 50,000 exclusive Nokia brand stores.
BlueRun Ventures and Nokia Growth Partners, two venture capital firms supported by Nokia Corporation, hope to invest in one or two Indian start-up companies every year, senior executives said on Tuesday.
Indian and Finnish finance ministry officials on Tuesday discussed Nokia's Rs 21,153 crore (Rs 211.53 billion) tax dispute case and reviewed the double taxation avoidance agreement.
The Income Tax department has informed the Delhi High Court that Nokia India and Nokia Corporation owe it Rs 21,153 crore (Rs 211.53 billion) as total tax liability (existing and anticipated), including penalty during a seven-year period from 2006-2013.
Nokia may be allowed to sell Chennai mobile plant.
Last week, Nokia offered financial help to employees who wished to explore opportunities elsewhere
Nokia is keen to shift its Chennai plant to Vietnam.
The warning came after Nokia Chairman and interim chief executive officer Risto Siilasmaa met Commerce Minister Anand Sharma and tax authorities in a bid to resolve the Rs 21,153-crore (Rs 211.53 billion) liability it faces.
"All the products that we have announced -- Nokia 3310, Nokia 6, Nokia 5 and Nokia 3 -- will be available in the second quarter of this year in India. Average global selling price for Nokia 3310 is 49 euros," HMD Global Oy Chief Marketing Officer Pekka Rantala said.
The department has calculated and arrived at the figure and may raise two separate demands.
The Department refused to allow transfer of the plant till the dues claimed by the department are not remitted by the company.
Nokia suffered a jolt on Friday when the Supreme Court refused to lift the restraint on sale of its Indian assets, including the Chennai plant, as part of the handset maker's global deal with the Microsoft.
Tax problems and unfavourable WTO agreements are making Tamil Nadu's electronics corridor less attractive to companies.
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