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 Audit :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: form 3cd :: empanelment :: cpt :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: VAT RATES :: ACCOUNTING STANDARD
 
 
News Headlines »
 How much income tax you should pay on investments in gold?
  Best ways to save tax in 2017
 8 unknown stocks that could yield huge returns
 Government may set threshold for probe into deposits to prevent harassment of taxpayers
 How to calculate capital gains tax
 April 1 still the target for GST: FM
 How to respond to CBDT’s tax compliance notice
 Goods & Services Tax (GST)(As On 01-01-2017)
 Excise, service taxpayers to migrate to GST portal by January 31
 Tax numbers belie slowdown: FM
 Income tax (1st Amendment) Rules, 2017

Inverted import duty form may stand straight
December, 06th 2006

The Customs duty structure may be in for a rejig. This could especially be in sectors suffering from an inverted duty structure. This simply means they pay a higher duty on the raw materials they buy, than on their finished products.

Sectors such as chemicals, electronics, auto components, tyres and electrical equipment, which were already finding it difficult to cope with the faulty import duty structure, have been hit harder in the last couple of years due to various bilateral trade agreements signed by India.

The government has been reducing the Customs duty rates as per its resolve to align them to the Asean levels every year. However, there has been a more than a proportionate steep reduction of duties in some sectors that were liberalised due to commitments made under bilateral trade agreements signed by India with countries such as Thailand, Singapore and Sri Lanka.

The government has, therefore, been under pressure from the industry to correct the anomaly in the tariff structure. The correction is expected to be carried out on the basis of recommendations made by the Anwarul Hoda committee on inverted duty structure, likely to submit its report shortly.

According to industry sources, the bilateral agreement with Thailand has adversely affected the markets for colour picture tubes, electric fans and transmission assembly. While the import duty on colour picture tubes is 12.5%, the duty on glass parts, which is a key input, is 15%.

Similarly, electric fans attract a duty of 15% while the import cess on the input iron alloy coil is 20%. The import duty on transmission assembly at 15% is the same as the import duty on its raw materials such as bearing and rubber parts.

Manufacturers of tyres for cars, trucks and buses have also taken a beating due to the various bilaterals signed by India. The import duty on natural rubber has remain unchanged at 20% while the import duty on tyres is 15% and lower under various agreements.

In China and South Korea, Indias main competitors in tyres, the import duty is 12.9% (under the Asia-Pacific trade agreement). Under Sapta, import duty on tyres is 7.5% while from Sri Lanka, tyres can be imported under the India-Sri Lanka FTA.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

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