The Government of India offers tax breaks to foreign companies that choose to manufacture their products locally and invest capital in India. It’s called a production-related incentive scheme, and it alleviates some of the taxes levied on companies. Samsung is one of the beneficiaries, but an issue with bills could deprive the Korean tech giant of its benefits for fiscal 2021.
Due to billing discrepancies, Samsung now faces an investigation. In August 2021, Samsung filed for $108 million in incentives for achieving $1.81 billion in additional sales for financial 2021 over the previous year.
Interestingly, the government official familiar with the Samsung case said that while the company cooperated and fixed the issue, “what went is gone for the first year,” which could mean Samsung won’t receive those incentives for 2021. companies, such as Foxconn and Winstron, have received their tax benefits.
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