Apple’s India tax break request declined, for now

- Advertisement -

Apple’s demand for tax concessions for local iPhone production has “not been accepted” by India’s Finance Ministry and the matter may now be decided by a council responsible for the implementation of the country’s new indirect taxation regime.

Apple, manufacturing, tax, GST, India

A goods and services tax subsuming over a dozen central and state government levies is expected to be implemented from July 1. Under the GST regime, all imports will be liable to the new unified sales tax and “any tax exemptions can be granted based on the recommendations of the GST council only,” P.P. Chaudhary, junior minister for electronics and information technology, informed Parliament.

- Advertisement -

The minister’s remarks suggest that the ball is now in the court of the GST Council – which comprises representatives from the country’s central and state governments – for any action regarding Apple’s request.

Apple has sought duty exemption on “manufacturing and repair units, components, capital equipment (including parts) and consumables for a period of 15 years,” Chaudhary said in a written response to Parliament earlier this month. He said Apple’s requests were examined “in the Department of Revenue [of the Finance Ministry] and have not been accepted.”

All existing exemption to manufacturers from excise and countervailing duties will also be reviewed by the GST Council, he added.

Separately, Commerce and Industry Minister Nirmala Sitharaman said that Apple, in its communications to the government, has indicated its plan for “selective introduction of manufacturing lines in spring 2017.”

Analysts also see huge potential for Apple to grow in India, the world’s second largest smartphone market, with or without tax breaks for local manufacturing. The company holds a market share of just 2 per cent in the country of 1.25 billion, where it is increasingly focusing due to a slowdown in China and the U.S – the largest and third largest smartphone markets in the world. respectively.

More than 40 companies, including South Korea’s Samsung and China’s Xiaomi, have established manufacturing facilities in India, none of which have sought any extra incentives.

At present, the Indian government provides support to manufacturers under its Modified Special Incentive Package Scheme to boost electronics manufacturing. The MSIPS promotes large-scale manufacturing in the electronic system design and manufacturing sector by providing subsidies of up to 25 per cent for capital expenditure.

By Baishakhi Dutta

- Advertisement -

Most Popular Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Exclusive

Crompton Greaves Starts Kitchen Appliance Manufacturing In Vadodara

0
This move aims to boost product quality and operational efficiency, enhancing the delivery of innovative, high-quality kitchen solutions to meet growing consumer demands. Crompton Greaves...

Advancing  Manufacturing Sector With New Refrigerator Plant

0
By incorporating advanced backward integration processes, this plant sets to redefine industry standards, promising improved efficiency and reduced environmental impact, while also boosting local...

EV Sales In India Fall Face First From March to April 2024

0
Electric Vehicle sales, across segments, have fallen short of the promise the sector was witnessing over the last few months. Despite the extension of FAME scheme for...

Buzz

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

New EV Policy Offers Incentives For Plant And Machinery Investments

0
Investments in creating physical infrastructure such as plants, machinery, charging stations, and other assets developed or acquired by companies will qualify for incentives under...

Battrix’s Dr Yashodhan Gokhale Joins JSW Energy As VP

0
Interestingly, he had started his professional innings in the role of a Research Chemist with Sudarshan Chemical Industries Dr Yashodhan Pramod Gokhale has joined JSW...

Important Sectors

Progress And Challenges In Autonomous Commuting

0
Despite over a decade of technological advancements and testing in cities like Phoenix and San Francisco, robotaxis still faces significant hurdles.  Companies like Waymo, Cruise,...

New EV Policy Offers Incentives For Plant And Machinery Investments

0
Investments in creating physical infrastructure such as plants, machinery, charging stations, and other assets developed or acquired by companies will qualify for incentives under...

Battrix’s Dr Yashodhan Gokhale Joins JSW Energy As VP

0
Interestingly, he had started his professional innings in the role of a Research Chemist with Sudarshan Chemical Industries Dr Yashodhan Pramod Gokhale has joined JSW...

Zevo India Aims For 50% Solar-Powered EVs In Logistics By FY25

0
The company intends to power its electric fleet using solar energy. Solar-powered vehicles, as implied by the name, are electric vehicles that use solar...

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Manufacturing

EVR Motors Discusses Tech Sharing With Indian OEMs

0
The Israel-based EVR Motors designs Radial Flux Permanent Magnet (RFPM) motors and licenses this technology for manufacturing by OEMs and component makers. EVR Motors, an...

Automotive Electronics Industry Growth Prospects And Strategies

0
From electric vehicles (EVs) to autonomous vehicles, discover the challenges, key players, and market segments driving a $136 billion industry revolutionising vehicles and the...
Siemens and CSA

Siemens To Sell Innomotics To KPS For $3.8B

0
Siemens chief financial officer Ralf Thomas expressed his pleasure at the significant progress made in optimizing their portfolio through the sale of Innomotics to...
Siemens and CSA

Siemens Limited Announces ₹1000 Crore Capex

0
In a statement, Siemens announced that it is expanding its factory operations in Goa to address the rapidly growing demand for essential industry components. Siemens...

Atul Aggarwal Named New Managing Director Of Sterling Tools

0
In his new position, Atul Aggarwal, who serves as a whole-time director as well, will lead the company's expansion and development into new verticals. Sterling...