Apple’s tax incentive demand turned down by Revenue Department: Report

The Department of Revenue has said ‘no’ to the tax incentive demand of the ‘US-based iPhone maker’.

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Highlights

    • Apple Inc., tax incentive demand denied.
    • Company last month announced its plan on manufacturing iPhone in India.
    • The company made a detailed presentation to ministry officials on January this year.

Apple’s proposal is yet again put under denial by the Government of India. Earlier, the Cupetino-based tech company’s request on selling refurbished iPhone had been turned down more than once and now a new report has claimed that the Department of Revenue has again rejected Apple’s tax incentive demand.
According to a post from PTI, the Department of Revenue has said ‘no’ to the tax incentive demand of the ‘US-based iPhone maker’. Sources told the publication that the demand of the technology major was sent by the Department of Industrial Policy and Promotion (DIPP) to its revenue counterpart.

Apple Inc., in discussion with the government has asked for incentives from the Department of Revenue and Department of Electronics and Information Technology (DeITy), the report cited. The company is seeking relaxation in the ‘mandated 30 percent local sourcing of components’. Besides, Apple had also demanded custom duty exemption on import of components and capital equipment for smartphone manufacturing in India.
Apple Inc., had earlier announced that it would set up a manufacturing plant in Bengaluru. The company had made a detailed presentation to an ‘inter-ministerial group’ on January this year and indicated that it is ready with a blueprint to begin manufacturing iPhone in India.
As Apple Inc., has had a radical downfall in its sales in the major market like US and China, the US-based technology major now seems to point head towards the smartphone market in India seeing its potential growth.
However, the country’s renunciation on granting approval for the company’s demand might slow down Apple’s ‘Make in India’ project.