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The "i" Comes home at last.
India hands Apple a win by letting foreign firms fund equipment for manufacturers
India hands Apple a win by letting foreign firms fund equipment for manufacturers
6 mins ago
Reuters
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The rule change will apply until the 2030-31 tax year and only applies to factories set up in so-called customs-bonded areas - which are technically considered being outside India’s customs border.
The decision favouring Apple was made public as part of Finance Minister Nirmala Sitharaman’s (left) 2026-27 annual Union Budget, presented on Sunday. (EPA Images pic)
NEW DELHI: India’s government on Sunday handed a major win to Apple by allowing foreign companies to freely provide machines to their contract manufacturers set up in certain areas for five years, without fearing any tax risk.
Smartphone manufacturing is a key plank of Prime Minister Narendra Modi’s agenda, but Apple had been lobbying India’s government to modify its income tax laws to ensure the company is not taxed for ownership of high-end iPhone machinery it provides to its contract manufacturers.
In India, unlike China, Apple was concerned that if it paid for machines for its contract manufacturers, Indian law could consider that a so-called “business connection” and impose taxes on its iPhone sales profits. That had forced its contract manufacturers Foxconn and Tata to themselves spend billions of dollars on machines
India hands Apple a win by letting foreign firms fund equipment for manufacturers
India hands Apple a win by letting foreign firms fund equipment for manufacturers
6 mins ago
Reuters
Share
The rule change will apply until the 2030-31 tax year and only applies to factories set up in so-called customs-bonded areas - which are technically considered being outside India’s customs border.
The decision favouring Apple was made public as part of Finance Minister Nirmala Sitharaman’s (left) 2026-27 annual Union Budget, presented on Sunday. (EPA Images pic)
NEW DELHI: India’s government on Sunday handed a major win to Apple by allowing foreign companies to freely provide machines to their contract manufacturers set up in certain areas for five years, without fearing any tax risk.
Smartphone manufacturing is a key plank of Prime Minister Narendra Modi’s agenda, but Apple had been lobbying India’s government to modify its income tax laws to ensure the company is not taxed for ownership of high-end iPhone machinery it provides to its contract manufacturers.
In India, unlike China, Apple was concerned that if it paid for machines for its contract manufacturers, Indian law could consider that a so-called “business connection” and impose taxes on its iPhone sales profits. That had forced its contract manufacturers Foxconn and Tata to themselves spend billions of dollars on machines
