India on a strict basis made a strict denial to the California-based technological firm Apple Inc in reference with their demands of various exemptions exceeding the government’s norms and rules. The Apple was sorting out to install a manufacturing hub in the south Asian country and for this, the organization was questioning the Indian government to grant some exemptions on imported parts that are used in the assembling process.
Commerce and Industry minister Nirmala Sitharaman was asked about the decision taken and in his words, he said that “Apple India has sought concessions, including duty exemptions on manufacturing and repair units, components, capital equipment including parts and consumables for smartphone manufacturing and service/repair for a period of 15 years.”Apart from this, the organization is running under a contract with a company Wistron which assembles the iPhone in Bengaluru and there is no effect on this deal as the contract is old enough to be kept outside the purview.
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The organization was in the queue to get exemptions from last year and the government of India gave the reason that it is not feasible for the nation to fulfill such demands at this point of time when the country is about to implement goods and service tax anytime soon. Revenue Secretary Hasmukh Adhia was also involved in the scene and was not clear about the exemption permission as he straight away mentioned that, “There is no way we can give individual exemptions under the GST regime.”
In this regard, Apple’s vice president of operations Priya Balasubramaniam met Hasmukh Adhia and the top officials who were present along with these two authorities confirmed the same. From past few months, Apple was sighting various exemptions from the Indian government to subsidize the components made on a premium basis for the iPhones by which the organization can shift there most of the work over here in India. Now, because of the denial of the request, the company can have a tough time to settle themselves in India.
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