Finnish handset giant Nokia has said that the Rs 21,153 crore tax liability case in India would  have  no effect on the timing or the material terms of the planned sale of the Devices & Services business to Microsoft.

“Nokia would like to stress that recent developments in India related to ongoing tax proceedings would not affect the timing of the closing nor the material deal terms of the anticipated transaction between Nokia and Microsoft, announced on September 3, 2013”, said Nokia in a statement.
 
It said that the transaction is still expected to close in the first quarter of 2014, subject to regulatory approvals and other customary closing conditions, irrespective of the proceedings in the Indian tax case.
  
The US-based MIcrosft had announced it will acquire almost all of the devices and services business of Nokia for $7.2 billion.
 
Few days back Nokia's Chairman and interim CEO Risto Siilasmaa in a meeting with Commerce Minister Anand Sharma had indicated at closing down the Chennai facility if the matter is not resolved.

In December last year Nokia had said that it was prepared to sell its assets including the Chennai facility to Microsoft after the Delhi High Court on Thursday permitted Finish giant handset giant to do so.

The Income Tax department had frozen Nokia India Private Ltd's assets and accounts for alleged income tax evasion. The matter has still not been settled.

The court had directed Nokia to pay an interim deposit of Rs. 2,250 crore into an escrow account within one month. The court also ruled that that the tax demand case will continue separately.
 
Earlier this week, Nokia's chairman and interim CEO Risto Siilasmaa after meeting commerce minister Anand Sharma had said the Chennai factory, which is among assets to be transferred to Microsoft, would have to be shut down if the tax issue is not resolved.