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: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: empanelment :: VAT Audit :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT RATES
 
 
News Headlines »
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions
  Mentioning of Minor Head Code for accounting of Refund
 Mentioning of Minor Head Code for accounting of Refund

Consumer durables industry seeks tax sops
February, 03rd 2007

The Consumer Electronics and Appliances Manufacturers Association (CEAMA), a representative of the consumer durables industry of India, has asked the government to bring down the total level of taxes (inclusive of excise duty, octroi and VAT) to between 12-17%, from the existing more than 30%, in order to make the industry globally competitive.

The key industry demands are excise duty cut from 8% to 4%, correct inverted duty arising out of free trade agreements (FTAs) to ensure a level playing field for Indian durable manufacturers. For instance, there is nil customs duty on colour televisions imported from Thailand, while inputs attract customs duty of 12.5%.

It wants differential customs duty on raw materials to be scrapped, components should be 5% while finished products to be at 10% while excise duty on all consumer electronics products to be rationalised at 8% from the existing 16%.

Moreover, the industry also wants the additional customs duty of 4% for import of all zero duty items to continue till local and non-vatable taxes on value chain exist. However, central sales tax (CST) on electronic goods should be totally abolished rather than being phasing out from April by lowering it to 3%.

CEAMA general secretary Suresh Khanna said, The government should bring the down tax rates and abolish all exemptions in excise duty and VAT to ensure economies of scale. With this, exports will double up to 30% in the next two years, while it currently comprises just 10% of the total turnover of the industry. This will also help generate an additional 20 million jobs by 2015.

The cause and effects
Nil customs duty on CTVs imported from Thailand
Demands for change in inverted duty arising out of free trade agreements
Continue additional customs duty of 4% for import of all zero duty items
While inputs attract customs duty of 12.5%
Industry wants excise duty to be cut from present 8% to 4%
It wants differential customs duty on raw materials to be scrapped
 
Samsung deputy managing director Ravinder Zutshi said, the right support from the government will help the industry take a giant leap. He also said that the government should treat consumer electronics (CE) on a par IT sector, where it concerns domestic taxes and levies. He justified this by saying that the difference between the two sectors is narrowing due to convergence of applications. So, VAT should be 4% across the board on entire hardware value chain.

With taxes coming down, the entire cycle of demand and supply will change for brighter prospects of the industry. The Rs 30,000 crore durable industry that grows at 8-10% is poised for a growth rate of 10-12% this year.

 
 
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 Portfolio

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