Column : From Foxconn to Nokia, and more

Feb 08 2013, 20:59 IST
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SummaryIf part of Apple’s profits were to be considered transfer pricing between it and Foxconn, who’d want to manufacture in China?

gives tax breaks for those producing in SEZs because it thinks this will stimulate production, it gives tax breaks to individuals on buying insurance because it thinks this serves a social purpose; all told, in FY12, tax breaks worth R3,93,000 crore were given. So if a Vodafone or a Nokia did not pay taxes, this is because the law allowed it, and the law allowed it because it wanted their business. India wishing to review the law is its business, as is relooking the way MNCs are pricing their exports, but there is an economic impact of all this. It will be interesting to see if the budget will try and address some of these concerns.

sunil.jain@expressindia.com

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