Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: VAT Audit :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: articles on VAT and GST in India :: cpt :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: TDS :: Central Excise rule to resale the machines to a new company :: empanelment
Customs and Excise »
 Central Board Of Excise & Customs New Delhi GST Flyers
 Hike in customs duty on electronics likely to boost revenue collection
 Customs duty raised on electronic goods
 Ministry Of Finance (Central Board Of Direct Taxes) Notification
 Refund of IGST paid on export of goods under rule 96 of CGST Rules,2017
 Customs And Central Excise Drawback – Part II
 Customs Valuation (Determination of Value of Imported Goods) Rules 2007
 Amendment to Customs Valuation Rules – Notification No. 91/2017 (NT)
 GST on Custom House Agents
 The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes
 The Customs and Central Excise Duties Drawback Rules, 2017
 Man fleeing from Customs arrested
 Refund of amount on account of double-payment of Customs

Customs duty raised on electronic goods
December, 19th 2017

The increase in customs duty will boost government’s tax collection at a time when GST collections have fallen below expectations

The government on Friday raised customs duty on various electronic products including mobile phones, microwave ovens and cameras to boost local manufacturing and create jobs.

The increase in customs duty will give local manufacturers a cost advantage over imports. The move will also help the government boost customs duty collection at a time when goods and services tax (GST) receipts have fallen below expectations.

To be sure, the duty increase will not impact imports from countries such as Thailand and Malaysia, with which India has free trade agreements.

Customs duty has been increased by up to 10 percentage points, as per a notification issued by the central board of excise and customs.

While it has been increased by 5 percentage points on items such as mobile phones, video recording devices, electricity meters and digital cameras, it has been raised by 10 percentage points on items like microwave ovens, lamps and lighting fixtures.

Currently, these items att­ract a flat 10% basic customs duty (BCD) in addition to integrated GST. It is the BCD that gives a tariff edge to local manufacturing as a cut in GST rate will equally benefit both imports and local production.

The rise in duty from 10% to 15% on handsets will make Apple’s iPhone models more expensive. Apple currently only assembles its iPhone SE model in India and imports the rest. The company has sought a range of incentives and tax relief from the government for it to expand its manufacturing in India.

“To foster the national initiative of Make in India, the government has raised the basic customs duty for various electronic products like mobile phones, microwave ovens, television sets, LED lamps and cameras. This would make import of these goods costlier and industry would be forced to explore domestic manufacture of these goods to reduce cost instead of importing these goods,” said Abhishek Jain, tax partner at EY.

Videocon Industries Ltd welcomed the move saying local production will get a boost. “It will also encourage foreign consumer durable companies to manufacture products in India rather than import them, and go a long way in fulfilling the goal of making the country a global manufacturing hub for a wide range of electronic goods. However, it is too early to assess the impact of the customs duty hike on product pricing,” Abhijit Kotnis, chief manufacturing officer, Videocon, said in a note.

M.S. Mani, partner, Deloitte India, said the move was unexpected so close to the Union budget. “The customs duty increase appears to improve the case for manufacturing in India. However, there could be short-term price increases for some of the products unless there is a reduction in the GST rates for such products.”

Besides incentivizing local production, the customs duty revision will also help authorities garner more revenue, said Pratik Jain, partner and leader for indirect taxes at PwC India.

GST revenue for October (collected in November) had slipped to Rs83,346 crore from the Rs92,000 crore for a the previous month.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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