<p> In a setback to US-based iPhone-maker Apple’s India dream, the government has said no to the tax concessions demanded by the company.<br /><br />The Department of Revenue in Commerce Ministry said ‘no’ to the tax incentives which among other things included relaxation in the 30% local sourcing of components which other manufacturers did not enjoy.<br /><br />Official sources said that exceptional tax concessions to any company was not being considered at the moment. “Decision is taken for everyone. So no company-specific decision could be taken,” they said.<br /><br />Apple had also demanded a 15-year customs duty exemption on manufacturing and raw materials, components and capital equipment for smartphone manufacturing in India.<br /><br />The technology major had already announced it would setting up a manufacturing unit in Bengaluru, and had made presentations to the Commerce Ministry officials regarding that.<br /><br />However, when the Department of Industrial Policy and Promotion moved the demands made by Apple to its revenue counterpart, they were rejected. Last month, Revenue Secretary Hasmukh Adhia had made a remark that concessions sought by the company would not fit into the proposed Goods and Services Tax regime.<br /><br />Apple had made a detailed presentation to the ministry officials on January 25, and indicated that it was ready with a blueprint to manufacture the iPhone in India.<br /><br />Earlier, Apple had also sought the government’s okay to bring used smartphones and assemble them locally. The government had rejected the proposal.<br /><br />Apple’s sales have drastically fallen in the US and China, which were its major markets. Now, the company is targeting India, the fastest-growing smartphone market in the world.<br /><br />The company has its manufacturing unit in China, but not in India. In India, it does not even have a wholly-owned store and sells its products through distributors. In China, it sells products through its own stores.<br /><br />Apple gets a jolt<br /><br />Apple wanted exemption from Customs duty on imports of components, equipments for 15 years<br /><br />The company also demanded relaxation in the mandated 30% local sourcing of components <br /><br />The US company represented its demand to DIPP Secretary Ramesh Abhishek<br /><br /></p>
<p> In a setback to US-based iPhone-maker Apple’s India dream, the government has said no to the tax concessions demanded by the company.<br /><br />The Department of Revenue in Commerce Ministry said ‘no’ to the tax incentives which among other things included relaxation in the 30% local sourcing of components which other manufacturers did not enjoy.<br /><br />Official sources said that exceptional tax concessions to any company was not being considered at the moment. “Decision is taken for everyone. So no company-specific decision could be taken,” they said.<br /><br />Apple had also demanded a 15-year customs duty exemption on manufacturing and raw materials, components and capital equipment for smartphone manufacturing in India.<br /><br />The technology major had already announced it would setting up a manufacturing unit in Bengaluru, and had made presentations to the Commerce Ministry officials regarding that.<br /><br />However, when the Department of Industrial Policy and Promotion moved the demands made by Apple to its revenue counterpart, they were rejected. Last month, Revenue Secretary Hasmukh Adhia had made a remark that concessions sought by the company would not fit into the proposed Goods and Services Tax regime.<br /><br />Apple had made a detailed presentation to the ministry officials on January 25, and indicated that it was ready with a blueprint to manufacture the iPhone in India.<br /><br />Earlier, Apple had also sought the government’s okay to bring used smartphones and assemble them locally. The government had rejected the proposal.<br /><br />Apple’s sales have drastically fallen in the US and China, which were its major markets. Now, the company is targeting India, the fastest-growing smartphone market in the world.<br /><br />The company has its manufacturing unit in China, but not in India. In India, it does not even have a wholly-owned store and sells its products through distributors. In China, it sells products through its own stores.<br /><br />Apple gets a jolt<br /><br />Apple wanted exemption from Customs duty on imports of components, equipments for 15 years<br /><br />The company also demanded relaxation in the mandated 30% local sourcing of components <br /><br />The US company represented its demand to DIPP Secretary Ramesh Abhishek<br /><br /></p>
