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Apple to Need Support of Indian States For Setting Up Manufacturing Hub in Bengaluru

Apple sought duty exemption on raw materials for manufacturing, components and capital equipment for 15 years for both domestic and export markets.

News18.com

Updated:January 27, 2017, 11:56 AM IST
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Apple to Need Support of Indian States For Setting Up Manufacturing Hub in Bengaluru
Apple App Store made record stats in the year 2016. (Image: Reuters)

Apple Inc will have to obtain the support of Indian states as the country is geared up to embrace the GST (goods and services tax) in the coming financial year. The Cupertino, California-based company is currently in talks with the Indian government to obtain tax sops for setting up a manufacturing unit in Bengaluru.

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The company has also put forth a demand for predictability and certainty of countervailing duty (CVD) exemption, whch requires supports from the Indian states.

The BJP-led Indian government has exempted parts used in mobile phone manufacturing from 12.5 per cent CVD but has included three items back under its umbrella in 2016 to encourage manufacturing in the country.

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Apple's key demand includes Centre's assurance on continuing the CVD exemption for 15 years amongst others.

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It has sought duty exemption on raw materials for manufacturing, components and capital equipment for 15 years for both domestic and export markets.

Apple also sought a change in rules that would govern how it could import defective iPhones to repair and export them again, a move it said was crucial for it to keep supporting and repairing older models of the iPhone.

Currently, Indian rules restrict such imports to phones that are no older than three years. Apple asked for the government's help in quickly processing a request for a ruling from Indian tax authorities on transfer pricing agreements between its affiliates.

It also identified India's customs procedures as a hurdle to manufacturing and asked the government to make them less onerous.

"For trusted traders inspections need to be less intrusive - this means less boxes opened," Apple had earlier written.

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