Revenue Department Turns Down Apple’s Tax Incentive Demand
Apple sought relaxation in the mandated 30 percent local sourcing of components.
The Department of Revenue has turned down the tax incentive demand of U.S.-based iPhone maker Apple, which wants to set up a manufacturing unit in the country. The technology major’s demand was sent by the Department of Industrial Policy and Promotion (DIPP) to its revenue counterpart, people familiar with the development told PTI.
In a communication to the government, the Cupertino-based technology major has asked for incentives from the Department of Revenue and Department of Electronics and Information Technology (DeITy). Besides exemption from customs duty on imports of components and equipment for 15 years, Apple sought relaxation in the mandated 30 percent local sourcing of components.
Apple executives had made a detailed presentation to an inter-ministerial group headed by Department of Industrial Policy and Promotion Secretary Ramesh Abhishek on its roadmap for setting up a manufacturing unit in India.
With sales tapering in the U.S. and China, Apple is eyeing India – the fastest-growing smartphone market in the world – and looking to set up a local manufacturing unit to cut costs. It, however, does not manufacture devices on its own and instead relies on contract manufacturers.
The company sells its products through Apple-owned retail stores in countries like China, Germany, the US, the UK and France, among others. It has no wholly-owned store in India and sells its products through distributors such as Redington and Ingram Micro.
