According to informed sources, Apple is actively lobbying the Indian government to revise the Income Tax Act, aiming to evade taxes on the provision of high-end iPhone production equipment to its contract manufacturers—a move that could potentially impede its further growth in the Indian market. Apple's contract manufacturing partners have already poured billions of dollars into establishing factories in India, with a substantial portion of these investments earmarked for purchasing assembly equipment. Experts have pointed out that should Apple fail to convince India to amend its tax legislation, it might be slapped with additional tax liabilities amounting to billions of dollars. In India, Apple's approach of procuring equipment for its contract manufacturers while retaining ownership sets off the 'business connection' provision, compelling it to pay corporate income tax on the profits generated from iPhone sales. For months, Apple has been engaging in consultations with Indian officials, in the hope of tweaking the relevant regulations.