Electronics sector calls for PE tax parity with China and Vietnam

India's electronics production is worth $135 billion, of which smartphones comprise $64 billion, according to ICEA. Smartphone production has grown 20-fold in the last decade

A group representing the electronics industry has requested the government to review permanent establishment (PE) rules to improve India’s tax competitiveness in manufacturing so that the country can compete against China and Vietnam.

 

Indian Cellular and Electronics Association (ICEA) has explained how China and Vietnam have structured PE rules — they determine when a foreign enterprise has a sufficient business presence to be subject to corporate tax in a country — in the past decade to ensure they are competitive against other countries. ICEA, which counts Apple, Tata Electronics, Oppo and Dixon among its members, has met with officials of