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: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT Audit :: list of goods taxed at 4% :: due date for vat payment :: TDS :: articles on VAT and GST in India :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: cpt
 
 
« Indirect Tax »
 Indirect tax receipts to see small, brief hit’
 There is no tax on interest income of up to Rs3 lakh a year for senior citizens
 Chidambaram favours change in direct tax rates
  Further rationalization of revised simplified procedure for fixation of brand rates
 Kerala to accept demonetised banknotes for payment of state tax till Nov 24
 Centre-state gridlock over GST jurisdiction remains, could threaten tax rollout
 India to levy tax on investments from Cyprus from April 2017
 Why tax radar may detect your cash deposits after Nov 8
 Income tax notices to religious, charitable trusts
 ICAI starts course on accounting technicians
 More trouble ahead as Tata Trusts get I-T summons for tax avoidance

End irrational spread on indirect taxes
June, 01st 2013

The finance ministry says a tablet will attract a higher duty than a mobile phone when imported, never mind the pious projections that India will see the world's fastest growth in data traffic over 2012-17. Phones and low-cost tablets are what Indians will use to cross the digital divide.Is there any sense in having separate duty rates for thetwo kinds of products? Tablets and mobile phones,as information technology-related imports, attract zero customs duty.

A countervailing duty (CVD) is charged on imports equivalent to the excise duty— 6%for mobile phones valued over Rs 2,000 and 12% on tablets. An importer cannot claim tax credit on CVD,whereas a domestic manufacturer can set off excise duty on a product against the taxes paid on inputs. A higher CVD on a tablet offers a local producer a higher level of protection than on phones.

There is little basis for such differential duties. Economic sense lies in offering precisely the same, uniform tax treatment to any kind of value addition so that policy does not discriminate against some kinds.The irrational spread in duty rates came about on Pranab Mukherjee's watch and the need now is to narrow the range and eventually converge on a single, lowrate of import duty and domestic goods and services tax. As potentially theworld's largest market for data communications, India has a strong case for developing indigenous manufacturing capability in data products.

To realise this potential, creating a rational, non-distortionary duty structure is more important than assorted subsidies and privileges. This, of course, does not militatea against state activism to create a semi conductor chip-making industry in the country, which many consider an important ingredient of the eco system needed to promote electronics manufacture.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

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