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: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ACCOUNTING STANDARDS :: form 3cd :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: list of goods taxed at 4% :: cpt :: VAT RATES :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: VAT Audit :: due date for vat payment
« News Headlines »
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016
 Announcement - Clarifications in Respect of MEF 2016-17

Consumer electronics industry seeks tax parity with IT
September, 08th 2007
Bring rates down to ASEAN levels in phased manner

Consumer electronic manufacturers have sought parity in tax treatment with the information technology industry, stating that differential duties are incongruous in the present era of convergence. The Centre levies a 16 per cent excise duty on televisions, whereas it is 12 per cent for personal computers (PC). Similarly, televisions attract a 12.5 per cent value added tax (VAT) rate, while it is 4 per cent for PCs.

Treating consumer electronics differently from IT is an outmoded approach and does not fit in with the era of convergence, where a PC can serve as a TV and vice versa. You simply need to add a tuner to an LCD monitor PC for converting it into a TV, just as a DVD can be played on both an electronic player as well as a computer, said Mr Suresh Khanna, General Secretary, Consumer Electronics and Appliances Manufacturers Association (CEAMA).

According to Mr Khanna, there was also a misconceived notion that consumer electronic industry catered to the luxury segment, as opposed to IT which is being consciously promoted to reach out to the masses. The reality is that the domestic market for TVs, at over 11 million units annually, is almost twice the 6.3 million odd PCs sold during last fiscal 2007.

The Association also pointed out that the total taxes on televisions that amount to 30 per cent should be brought at par with the Association of South East Asian Nations level of 5-7 per cent. Total taxes on TVs in India are the highest in the world. These taxes should be brought down to ASEAN rates in a phased manner. In the first phase, rates should be slashed to under 20 per cent and eventually brought down to 5-7 per cent, said Mr Khanna. Such high levels of taxes compel people to buy at the grey markets, he added.

CEAM, that recently elected Mr Ravinder Zutshi as its President, has started working on a draft and expects to table these concerns before the budget next year. Consumer electronics are no longer luxury items. These have become a necessity today. Also not only does the sector provide revenues to the Government, it also provides several people with employment, said Mr Khanna. The total consumer electronics and home appliances industry is worth Rs 30,000 crore with appliances such as air conditioners and microwaves seeing a 30 per cent and 20 per cent growth respectively. In fact, the home appliances category is growing at 12-13 per cent annually.

Debdatta Das

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

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