TURN OF EVENTS

Mar 2013- I-T dept issues ~ 2,080-cr tax demand (corrected to ~2,649 cr) to Nokia India for failure to withhold tax on the payment made to its parent as ‘royalty for the software’ used in its mobile phones since 2006

May 2013- Finland invokes the mutual agreement procedure under the DTAA

Jul 2013- Firm agrees to pay ~700 cr towards ‘stay of demand’ raised by I-T dept and prevent the full amount of the claim by the DDIT becoming payable while it awaits another hearing

Sept 2013- Says it plans to sell devices & services division to Microsoft

Sept 2013- I-T dept freezes all assets

Dec 2013- Firm offers to transfer sale proceeds to an escrow account having a minimum of ~2,250 cr as security for tax claim; demand turned down by Delhi HC in Feb

Feb 2014Firm gets a ~2,400-cr sales tax bill from Tamil Nadu, claiming handsets made were sold in the state, not exported

Mar 2014- SC dismisses Nokia India’s asset freeze appeal, allowing the Delhi HC order to stay in force

April 2014- Chennai unit excluded from Microsoft deal on asset freeze

April 2014- Madras HC orders Tamil Nadu authorities to reconsider sales tax claim against firm. Asks Nokia to provide ~240 cr, or 10% of the disputed tax demand, as a deposit within eight weeks as a precondition for the two sides to discuss the claims

Nov 2014- Nokia closes Chennai factory