Lenovo is said to be taking advantage of low duty and excise incentives in the state — the Indian government has granted its northern hill states the ability to give companies preferential tax regulations for the next 10 years.
Interestingly, that's set up a situation where PC makers who have set up manufacturing plants in other parts of the country are at a cost disadvantage. One of Lenovo's rivals, Dell, earlier this year set up a plant in Chennai's special economic zone, a district that is supposed to provide duty relief. But the newspaper reported that when production begins at the Dell plant, its computers will be saddled with 16 percent duties and value added taxes, compared to only 12 percent at the Lenovo plant.
Earlier this year, Dell chief Michael Dell joined the chorus of critics of India's fragmented tariff scenario. Duty and VAT levels can vary drastically between the country's individual states, making production and sales a difficult proposition for large corporations who want to sell product through India.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now