In the wake of Kerala VAT department demanding a separate value added tax on mobile chargers, the Indian Cellular Association (ICA) has urged the Kerala government to follow the best international practices and help the industry in the establishment of a robust ESDM (electronics system design & manufacturing) ecosystem in India.
In a letter to the chief minister Ooomen Chandy, ICA national president Pankaj Mohindroo drew the attention of the unwarranted and detrimental attempt by state's tax department to treat mobile charger as an independent accessory for the purpose of taxation.
Internationally, the association said, it was a well-accepted taxation practice that mobile chargers were not taxed separately though they were part of the mobile phone unit.
ICA has held its view that such arbitrary actions on part of the state taxation department could dampen the efforts to create a robust ESDM ecosystem in the country.
"Across the world, essential accessories which come as a composite part of mobile handset pack are treated as one unit," he said.