View: Apple has to pay its slice in India

Apple is reportedly lobbying GoI to tweak the I-T Act 1961, so that ownership of specialised production equipment placed with contract manufacturers like Foxconn, Tata and Pegatron won’t create a taxable nexus in India. At present, such ownership could be read as a ‘business connection’ under domestic law. It could also tip a permanent establishment (PE) analysis under treaties, exposing a slice of Apple’s profits to Indian tax.