Apple Officials Take Up Duty Wishlist With Finance Ministry
The meeting assumes significance as the revenue department has rejected Apple’s demands.
Senior executives of iPhone maker Apple on Wednesday held detailed deliberations on their demands related to duty concessions with finance ministry officials. The meeting assumes significance as the revenue department has rejected the demands of the U.S.-based technology major. The duty wishlist was discussed in a meeting attended by key executives of the company, people privy to the matter said.
Apple India has sought concessions, including duty exemption on manufacturing repair units, components, and capital equipment. It also sought relaxations for consumables for smartphone manufacturing and service or repair for 15 years as it plans to set up a manufacturing unit in India.
These concessions would help the company get component makers to set up units in the country as it cannot source inputs locally.
The Cupertino-based technology major has asked for incentives from the Department of Revenue and Department of Electronics and Information Technology (DeITy) in a written communication to the government.
Apple wants relaxation in the mandated 30 percent local sourcing of components. It is also keen on reduction in customs duties on completely-knocked-down and semi-knocked-down units of devices that are to be assembled in the country.
In January, Apple had indicated to the government that it is ready with a blueprint to begin manufacturing iPhones in India, but wants fiscal concessions, including Customs duty waiver on import of components.
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.