LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Business News » Companies News

What will be the impact of govt's decision to give into Apple's tax concessions demand?

The government has now allowed Apple some leeway on the import of part for its iPhone assembly in India after several talks with the government.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
What will be the impact of govt's decision to give into Apple's tax concessions demand?
People using Apple iPhones at an iStore. Photo: IANS
Written By: ZeeBiz WebTeam
Updated: Wed, May 24, 2017
07:19 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Apple India Store announces Rs 5,000 cashback offer, no-cost EMI Apple India Store announces Rs 5,000 cashback offer, no-cost EMI
Apple iPhone SE 2021, AirPods Pro 2 launch may launch in this month| Know full details here Apple iPhone SE 2021, AirPods Pro 2 launch may launch in this month| Know full details here
Apple iPhones Deals in India: Avail exclusive offers in this shopping festival! Apple iPhones Deals in India: Avail exclusive offers in this shopping festival!
Google suspends Parler from Play Store; Apple threatens to ban it Google suspends Parler from Play Store; Apple threatens to ban it
Apple supplier in China accused of using forced Uyghur labour Apple supplier in China accused of using forced Uyghur labour
Key highlights:
  • Government has allowed Apple to import mobile handset parts for local manufacturing tax free
  • Apple will be subject to the condition of increasing local value addition over time
  • Apple has sought include a 15-years tax holiday for import of components

In a relief for Apple, the government seems to have finally succeeded in getting one of the tax concessions it has was seeking in order to assemble iPhone in India. The government has allowed Apple to import mobile handset parts for local manufacturing tax free, according to a Reuters report quoting a top government official.

However, the tax concessions granted by the government to Apple will be subject to the condition of increasing local value addition over a period of time.

ALSO READ: Apple's first India-made iPhone SE is here; is this the new price?

The company has looking to manufacture iPhone's in India but has been pushing for the Indian government to offer it several tax concessions to import its equipment and parts into the country for its assembly.

Among the tax concessions Apple has sought include a 15-years tax holiday for all components that it would import for setting up a manufacturing facility in India.

This was however rejected by a panel of ministries and offered a phased programme to increase the share of local production in the manufacturing, Arun Sundararajan, Secretary at the Ministry of Electronics and IT, told Reuters.

ALSO READ: Apple seeks 15-year tax holiday, other demands to make iPhones in India

“We have offered them tax exemptions on those components which could not be manufactured in India,” Sundararajan told Reuters and added that local manufacturing component would have to be increased gradually.

However, it looks like the government has conceded to Apple's demand to import its parts rather than source it locally.

The government had earlier maintained its stance on the 30% local sourcing norm, where Apple would have to source 30% of its smartphone parts from local vendors in order to promote local manufacturing the country.

While the government intends for Apple to increase the local share in production of iPhones in a phased manner over a period of time, it remains to be seen if the company will do the same.

Already there was a difference between the plans of Apple and the government, though the company has agreed to increase local share in production over a period of time.

ALSO READ: Won't allow you to sell used iPhones in India, Govt tells Apple again

Apple has been pushing the government to bent its rules for the company to setup in India. The company's executives have met with government officials several times since last year. Even CEO Tim Cook visited India last year and met with Prime Minister Narendra Modi to push their agenda.

The Indian government wants Apple to raise the share of local production in phases of 3 year, 5 years, 7 years and 10 years.

The report says that the industry estimates the phased manufacturing programme could increase local value addition in mobile phones manufacturing to 40-50% in the next three years. The total value estimated of mobile phones in India is expected to touch around Rs 90,000 crore in comparison to Rs 54,000 crore last year.

While government has given Apple the tax cuts for the import of iPhone parts, the big question is will it allow others to do the same. Many other smartphone manufactures will also look for these same concessions for importing parts from China and other countries. This could pose a threat to local manufacturing in India overall.

Besides this, another troubling part about this is that Apple has been looking to sell refurbished iPhones in India. While the government has disagreed to it, this could pave way for it to change its stance on the following in the future.

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
AppleApple tax concessionGovernmenttax concession on importsApple importsiPhoneiPhone in IndiaIT
RELATED NEWS
Apple India Store announces Rs 5,000 cashback offer, no-cost EMI Apple India Store announces Rs 5,000 cashback offer, no-cost EMI
Apple iPhone SE 2021, AirPods Pro 2 launch may launch in this month| Know full details here Apple iPhone SE 2021, AirPods Pro 2 launch may launch in this month| Know full details here
Apple iPhones Deals in India: Avail exclusive offers in this shopping festival! Apple iPhones Deals in India: Avail exclusive offers in this shopping festival!
Google suspends Parler from Play Store; Apple threatens to ban it Google suspends Parler from Play Store; Apple threatens to ban it
Apple supplier in China accused of using forced Uyghur labour Apple supplier in China accused of using forced Uyghur labour

LATEST NEWS

PUBG Mobile India relaunch date; FAUG launch details - Here's is all you need to know

Maharashtra Panchayat Election Result 2021 Live Updates: Counting is on - Check latest news, BJP, NCP, Congress, Shiv Sena seats here

Indigo Paints IPO: IIFL Securities recommends investors to subscribe to the issue, believes its a Multi-year high growth story

JEE, NEET, CBSE board exams 2021: Education minister has this special message for students

Post Office Scheme: You can deposit money online in your Public Provident Fund (PPF) account — here is how

Connecting India, Uniting India! Check Full List of Statue of Unity, Kevadiya trains names, frequency, origin, destination railway stations

Piramal to takeover DHFL loans? Yes Bank, Canara Bank, Union Bank of India may benefit | Jefferies Highlights

GST: Never claim fake Input Tax Credit (ITC) in greed of money, else this will happen - Modi government is watching you!

WhatsApp Web users' Phone numbers available on Google Search? Know how to stop it

Zero fee, no hidden charge on UPI payments to merchants! Encouraging MSMEs, small businesses to adopt digital payments

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved