While the Chinese conglomerate Xiaomi is already setting up its second factory in India and accruing a major share in the smartphone market, Apple is still struggling to fulfil its manufacturing demands in the country. The US-based tech major’s tax incentive demand was recently denied by the Revenue Department. Now a new report has outlined that Apple Inc.’s demand for tax incentives will be encouraged after the Good and Services Tax (GST) is rolled out. According to the report from PTI, Commerce and Industry minister, Nirmala Sitaram told the publication.
“GST will be coming soon. So, tax-related incentives demanded by Apple iPhone will have to be looked from a different angle.” The government has not accepted most of the demands of the iPhone maker, she further said.
The Cupertino tech giant’s demand on tax concession has been intermittently put on the bars of denial by the Government of India. Apple Inc., in December 2016 sought for being permanently exempted from the 30 percent local sourcing rules based on the ground that it was bringing “the state-of-art” and “cutting-edge technology” products for which local sourcing is impossible.
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The government, recently, relaxed the labelling laws for the company, however, the relaxation is meant only for three years from the commencement of business ‘for single brand retail trades’. Besides this, Apple’s request on importing and selling refurbished iPhone in India was rejected early in February this year. Moreover, Apple had also demanded custom duty exemption on import of components. The company placed a request for tax concessions in import and manufacturing import duties to open stores in India but that got rejected as well.
The US-iPhone maker is planning to set up a manufacturing plant in Bengaluru this year. The company is said to assemble its products most likely the iPhone 6 and iPhone 6s units, as reports have cited. Apple Inc., back in January this year briefed a detail presentation to the ministry officials wherein the company had indicated that it is ready with a blueprint to begin manufacturing process of iPhone units in India.
About Apple company
Apple is an American multinational technology company headquartered in Cupertino, California that designs, develops, and sells consumer electronics, computer software, and online services. The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple smartwatch, and the Apple TV digital media player. Apple’s consumer software includes the MacOS and iOS operating systems, the iTunes media player, the Safari web browser, and the iLife and iWork creativity and productivity suites. Its online services include the iTunes Store, the iOS App Store and Mac App Store, Apple Music, and iCloud.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell personal computers. It was incorporated as Apple Computer, Inc. in January 1977, and was renamed as Apple Inc. in January 2007 to reflect its shifted focus toward consumer electronics. Apple (NASDAQ: AAPL) joined the Dow Jones Industrial Average in March 2015.