* Chennai plant one of Nokia's biggest
* Shares fall 2.3 percent
(Recasts with comment Chennai, share move)
CHENNAI/HELSINKI Jan 8 Finnish phone maker
Nokia's said Indian 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
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
In November, a junior finance minister said India was
investigating the local unit of chocolate maker Cadbury over
($1=55.2 Indian rupees)
(Reporting by Anupama Chandasekaran and Ritsuko Ando; Editing
by Jane Merriman)