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India proposes extending tax breaks for contract manufacturing in a boost for Apple
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NEW DELHI, Aug 3 (Reuters) - India has proposed extending tax exemptions until 2041 for foreign companies that provide machinery to contract manufacturers, handing a major win to Apple which had lobbied for such changes, and is fast expanding in the market.
According to a draft of the proposed tax amendments seen by Reuters, "to provide (tax) certainty" the government has extended tax breaks until March 31, 2041 to foreign companies that provide equipment to their contract manufacturers in India.
Apple had feared that, unlike in China, tax laws in India could treat ownership of machinery supplied to its contract manufacturers as so-called "business connection", exposing its iPhone profits to tax.
India has also exempted from tax foreign companies' income from storing and providing parts used to manufacture such electronics components to contract manufacturers until 2041.
DATA CENTERSIndia has also proposed to make it easier for foreign companies that use data center services in the country to make use of tax exemptions.