Finnish mobile phone maker Nokia yesterday raised the Rs2,080-crore tax dispute with commerce minister Anand Sharma and sought his help in resolving the matter at an early date, reports PTI.
The news agency quoted a source as saying Nokia's executive vice president for devices and services Stephen Elop met the minister and asked his to resolve the tax issue.
The minister had suggested Elop approach the finance ministry, which was the ministry concerned.
The company's India arm, has been slapped with a tax demand notice of Rs2,080 crore for five years starting 2007-08 related to treatment of payments for software supplied by the Finnish parent company for devices produced in India.
Tax authorities in India consider the payments as royalties that are subject to taxation in India.
Elop, though refused comment on whether he raised the tax demand with Sharma, but according to sources the issue had come up at the talks.
Last week, US software giant Microsoft and the Finnish company reached an agreement on the acquisition of Nokia's devices and services business and license its patents for about $7.2 billion.
Under the agreement Nokia would retain its telecom network equipment arm NSN, mapping and location services, its CTO office and its patent portfolio.
Elop is reported to have assured Sharma of the company's commitment to the Indian market amid reports of a possible pullout.
Elop said he had also visited the company's Chennai factory and other senior officials in the New Delhi office.
On 4 September, US software giant Microsoft acquired the company's handset business for $7.2 billion.
Elop, earlier with Microsoft's Canadian division, would now head Nokia and is also expected to succeed Steve Ballmer, who is expected to retire as CEO Microsoft soon.
Nokia challenged the tax matter in the Delhi High Court, which handed over the case to the appeals division of I-T authorities, but in May, the commissioner of income-tax (appeals) dismissed the challenge. The company then said it would revert the case back to the Delhi HC.