Entries with tag indian government.

Nokia Retains Controversial Indian Manufacturing Facility

Nokia will retain its Indian mobile phone handset plant to make sure the sale of its global handset business to Microsoft will complete as scheduled. Nokia will now operate the factory as a contract manufacturing unit for Microsoft. The Chennai plant has been the target of an ongoing tax dispute with Indian authorities, which ordered Nokia to deposit $368 million into an escrow account pending the outcome of a trial. (Reuters)(Economic Times)(Bloomberg)

Indian Government Lets Embattled Nokia Transfer Factory to Microsoft

Nokia has won an appeal in its ongoing tax dispute with the Indian government, allowing the company to transfer one of its major factories to Microsoft, which plans to buy Nokia’s mobile-device business for $7.4 billion in early 2014. Indian officials had frozen Nokia’s local assets pending resolution of its tax issues. However, a court in the country let the company transfer its local factory to Microsoft, as long as it deposited $367.17 million in an escrow account. The government could receive those funds, depending on the outcome of the tax case against Nokia. The plant in Southern India is among Nokia's largest. Nokia claims the Indian government served it in March 2013 with a bill for 20.8 billion rupees ($330 million) covering five fiscal years. However, India’s tax department has claimed at various times that Nokia owes 78 billion rupees ($1.25 billion) or more than 210 billion rupees ($3.38 billion). Nokia says it has already paid €85 million ($116.7 million) of its tax liability. The dispute threatens the company’s deal with Microsoft. Several foreign companies—including IBM, Royal Dutch Shell, and Vodafone—are currently in tax disputes with the Indian government. “The government’s retroactive application of tax laws and efforts to collect back taxes have made foreign companies wary of setting up operations in India,” wrote the New York Times. (Reuters)(The New York Times)

Indian Tablet Initiative Stalls

The Indian government’s initiative to provide the nation’s students with a low-cost tablet computer may be shuttered if the manufacturer fails to meet a 31 March deadline. The Aakash/The Sky Project was offering US$35 tablets as an alternative technology for students who could not afford technologies such as the iPad. The manufacturer has reportedly only shipped 17,000 devices to date. Government officials set the deadline after numerous delays and production problems. In light of these problems, the final price is set to be double the original cost. (SlashDot)(ZDNet India)

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