tax officials raided its production unit in the southern city of Chennai on Tuesday.
A company spokesman said it was cooperating with the probe, although he could not elaborate on what local authorities were looking for. The Chennai plant is one of Nokia's biggest facilities.
A senior Indian tax official said the investigation related to allegations that the company may have evaded around 30 billion rupees ($543 million) in taxes.
"We are suspecting a default in TDS (tax deducted at source) on payments to other countries against software supplies," said the Indian tax official, who declined to be named.
Nokia shares fell 2.3 percent to 3.20 euros by 1142 GMT.
India's finance minister, P. Chidambaram, has vowed to clamp down on tax evasion to help the country plug a widening fiscal deficit.
In November, a junior finance minister said India was investigating the local unit of chocolate maker Cadbury over taxes.
(Reporting by Anupama Chandasekaran and Ritsuko Ando; Editing by Jane Merriman)
India is clamping down on tax evasion, that good. But, who is clamping down the the Finance Minister? Corruption is rampant in India, everyone is wheelin and dealing that's why they cannot get out of their own way and come to Europe, Canada and USA. We get their best and brightist - I love it. I wonder whose hands is out on this possible investigation? I think this is minor news. Anything to justify a down day, huh.
initiative to crack down on mass tax evasion in india.. now we lost .15 didn't see that comming. .. funny they could have made more money shorting the stock and then implementing the raid., like the US does.. put options were traced back Fbi building on American airlines days before 911 ... atleast they know the game.. lol
Sentiment: Strong Buy
India is basically a third world nation with corruption and lawlessness every where. Just read the story of the young medical student who was raped and killed with no rescue from the police or the on watchers. Sad and pathetic. She could have survived if the police took immediate action to rescue her or even take her to emergency hospital immediately. It doesn't surprise me if the so-called minister who sent the raiders didn't have millions of rupees deposited in his foreign bank account by the crooked hedgies of wall st. The way the crooks of wall st are coming after nok, nothing surprises me any more.
senior Indian tax official said the investigation related to allegations that the company may have evaded around 30 billion rupees ($543 million) in taxes.
That's alot of money...With NOK selling their phones at a loss NOK will be bankrupt in no time.