Daijiworld Media Network - New Delhi

New Delhi, Oct 15: Global tech giant Apple has urged the Indian government to relax taxation rules related to the ownership of high-end iPhone manufacturing machinery supplied to its contract manufacturers, Reuters reported.

Apple contends that provisions under the Income Tax Act of 1961 create a “business connection” between the company and India, making its iPhone profits liable for Indian taxes—even though the machinery is used by independent manufacturers.

In contrast, Apple faces no such taxation issues in China, where similar machinery is provided to its production partners. The company views this taxation hurdle as a major barrier to expanding its manufacturing base in India, which forms a key part of its strategy to diversify beyond China.

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