e-Governance

Budget 2015: Boost to electronics manufacturing

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ArunIn line with the government’s thrust on ‘Make in India,’ the Union Budget  2015 provides a big fillip to electronics manufacturing in India.

The government has increased duty benefits for domestic producers of these electronic items. “Excise duty structure for mobiles handsets, including cellular phones, is being changed to 1 per cent without CENVAT credit or 12.5 per cent with CENVAT credit,” Finance Minister Arun Jaitley said while presenting the Budget in Parliament.

“Earlier the duty structure for mobiles was 6 per cent with CENVAT credit. For tablet computers, the duty structure is “2 per cent without CENVAT credit or 12.5 per cent with CENVAT credit.”

Local manufacturer can claim duty benefits on VAT paid on purchase of various input materials. The increase in CENVAT credit will give benefit to domestic manufacturers against those importing such items.

The Finance Minister also announced to exempt “parts, components and accessories, falling under any Chapter, for use in the manufacture of tablet computers and their subparts for use in manufacture of parts, components and accessories, “from” BCD (basic custom duty), CVD and SAD.

“All goods except populated PCBs, falling under any Chapter of the Customs Tariff, for use in manufacture of ITA bound goods from 4 per cent to Nil,” he said.

Government has also removed special additional duty on components of tablet.

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