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Apple seeks tax law changes in India to support manufacturing growth: Report
Apple seeks changes to India’s tax law to avoid billions in taxes on factory equipment as its iPhone production in India grows to 25%, Reuters reports.
- Apple Inc. is lobbying India to amend the Income Tax Act of 1961 to avoid taxation on high-value machinery owned by Foxconn and Tata Electronics, Reuters reports.
- The legal distinction hinges on how India treats ownership, as Apple pays for and owns specialist manufacturing equipment used in China without tax impact, but Indian law could deem this a `business connection` exposing Apple to billions in tax liability, experts say.
- India now accounts for around 25% of global iPhone shipments as Apple rapidly expands and Foxconn and Tata have invested more than $5 billion in five manufacturing facilities, Reuters reports.
- India faces a policy dilemma between investment and revenue as the Indian government must balance encouraging foreign companies like Apple with securing tax revenue, and experts say a compromise seems likely.
- High upfront equipment costs complicate scaled production as Foxconn and Tata sometimes buy machines, but Apple faces barriers expanding China’s ownership model in India, Reuters reports.
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Apple urges India to revise tax rules that may slow its growth: Report
India, the world’s second-largest mobile market, has become a key focus area for Apple’s manufacturing plans. Contract manufacturers such as Foxconn and Tata have already invested billions of dollars to open iPhone plants in the country.
·India
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Coverage Details
Total News Sources19
Leaning Left2Leaning Right5Center4Last UpdatedBias Distribution46% Right
Bias Distribution
- 46% of the sources lean Right
46% Right
L 18%
C 36%
R 46%
Factuality
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