Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: empanelment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: form 3cd :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: cpt :: ACCOUNTING STANDARDS :: due date for vat payment :: VAT Audit
 
 
News Headlines »
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government

MAIT seeks central sales tax removal
November, 09th 2006

Submits proposals to Govt to make sector competitive

In a bid to make the electronics industry more competitive, the electronics and hardware manufacturer associations have proposed a slew of recommendations including removal of central sales tax (CST) on all electronics hardware, 4 per cent VAT across the board on entire hardware chain, removal of distinction between IT and non-IT for domestic taxes and levis and allowing 100 per cent domestic tariff area (DTA) access to all electronics hardware products.

It has also asked for five per cent interest subsidy of Rs 600 crore per year and income tax exemption on all electronic hardware units for 10 years.

Industry bodies are of the opinion that as a result of CST, local manufacturers were being rendered uncompetitive since imports were being cheaper under the Information Technology Agreement (ITA) of the WTO to which India is a signatory.

Mr Vinnie Mehta, Executive Director, Manufacturers Association of Information Technology (MAIT), said, "Single biggest challenge of IT industry is the issue of CST. Since the industry has zero duty structure under the ITA, local taxes are the biggest concern. CST makes local sourcing of components more expensive vis--vis imports. The Government has announced a roadmap for this, under which it would reduce one per cent of duty every year. However, the IT industry must be considered as a special case, and instead of reducing it in a phased manner, it should be brought down at the earliest."

MAIT has emphasised complementing software development with strong R&D in hardware for Indian companies to become competitive in the global market.

Under the proposed recommendations submitted recently to the Department of Information Technology and the National Manufacturing Competitive Council, the industry chambers have sought the above recommendations. "We have just submitted these proposals and electronics hardware being the single largest sector, India must take all measures to promote it," said Mr Deepak Puri, Moser Baer, who chairs the electronics hardware committee of the CII.

"The proposal is also likely to be discussed at the joint Indo-US ICT conference in December to further understand the needs of the sector," added the CII Chief Information Officer, Mr Vikram Tiwathia.

Industry bodies estimate that adopting these recommendations would create a growth rate of 32 per cent in the hardware market by 2010 and achieve a market capitalisation of $85 billion. This would contribute $ 11.06 billion indirect revenue and $1.29 billion direct revenue. Over the next 10 years, electronics hardware production would contribute to 12 per cent of GDP, creating an employment of 7 million directly and 14 million indirectly.

At present, India has 0.7 per cent share followed by Thailand at 1.4 per cent, Taiwan at 3.5 per cent, South Korea at 7.2 per cent, Germany at 12.1 per cent against China, which leads with 14.6 per cent share in the global production.

The chamber believes that the policy would help India address the problem of trade deficit, of which 30 per cent is due to electronics hardware.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions