Microsoft Devices on Wednesday announced the launch of "most affordable" Lumia 530 dual SIM smartphone for Rs. 7,349 in India.

Microsoft Devices said Lumia 530 will be available in stores at a best buy price of Rs. 7,349 starting August 14.

The new Lumia 530 will provide a powerful entry to Windows Phone 8.1 with a Quad Core processor delivering faster and smoother user experience, among others, it said in a press release.

This device will expand the reach of Windows Phone as it allows more people to enjoy Lumia innovations and Microsoft services similar to those offered in high-end Lumia smartphones, the release added.

"The affordable smartphone segment is growing exponentially, driven primarily by youth who are constantly looking out for smartphones with power-packed features at affordable prices," Viral Oza, Director-Marketing, Nokia India, a subsidiary of Microsoft Mobiles Oy, said.

In yet another setback to Finnish handset maker Nokia , the Tamil Nadu government has slapped on it a Rs. 2,400 crore tax demand notice related to the devices sold from its Chennai factory.
   
Nokia, which as part of its deal with the US-based software giant Microsoft has to transfer its Indian assets including the Chennai factory by March-end, on Friday approached the Madras High Court challenging claims made by the Tamil Nadu government.
   
The development comes within a week of the Supreme Court refusing to lift restraint on sale of its Indian assets in a separate case related to payment of tax dues.
   
Tamil Nadu government's Commercial Taxes Department (VAT) have assessed sales tax on the devices sold from the firm's Chennai manufacturing facility.
   
According to sources, the government has claimed that the company is selling mobile phones in the domestic market instead of exporting them.
   They said the state government has sent a tax demand notice of about Rs. 2,400 crore to the company in relation to this issue.
   
"Nokia has today filed a writ to the Madras High Court to contest a claim from the Tamil Nadu tax department, which has moved to assess sales tax on the export of devices from the company's Chennai facility," the company said in a statement.
   
Nokia considers the claim to be completely without merit and counter to domestic tax laws, it added.
   
"Nokia will defend itself vigorously in this matter. It is absurd that the Tamil Nadu tax authority is now claiming that devices made in Chennai were not exported and were instead sold domestically in India.
   
"We contend that this allegation has no basis in reality whatsoever; it could easily be rebuffed by a check of documentation provided to various governmental departments including Customs," the company said.
   
In India, exports are by law exempt from tax and Nokia has proved consistently that devices produced at Chennai are exported abroad, it added.
   
Nokia further said, "Indeed, the company has been regularly assessed and audited by the tax authorities since 2006 without incident, and it has also won numerous export awards from governmental organisations."