Nokia in India

It would appear that Nokia isn't too keen on India these days. At least from a manufacturer's stand point. The issue at hand seems to be a hefty tax bill that has the Windows Phone OEM considering the country its "least favourable" market to operate in.

Nokia is fighting a $20 Billion rupee tax demand from the Indian Government (about $311 million U.S.). A tax burden that may have Nokia move the manufacturing of their mobile phones to China and import them to the Indian market.

Nokia is the dominant Windows Phone OEM in India (via AdDuplex)

At the heart of the issue seems to be taxation on software downloaded to Nokia's smartphones. Nokia says the software should be taxed in Finland under a treaty with India. India believes the software should be taxed under it's tax laws.

Nokia's presence is rather large in India employing about 8,000 workers in one of the largest plants world wide in Chennai, India as well as a strong consumer market.

The tax dispute with India isn't a Nokia exclusive. India is facing similar challenges from other International companies such as Vodafone and Shell Oil. All likely a result of India's efforts to increase tax revenue by collecting delinquent taxes to help address a growing budget deficit.

Nokia urged the government to "act quickly to correct the wrong perception of India as a place for business".

Source: The Indian Express; via: Times of India; Thanks, Devarshi, for the tip!