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Local manufacturers of electronic goods to benefit from new CBEC directive
NEW DELHI: The Central Board of Excise and Customs (CBEC) has said manufacturers of goods in India can enjoy a concessional two per cent duty regime without availing of tax credit on inputs.
In an aim to boost the Make in India initiative, the CBEC said importers will have to pay 12.5 per cent countervailing duty.
Manufacturers of electronic items like domestic mobile phones, laptops and tablets manufacturers are expected to reap the benefit of this.
Earlier, this advantage to local manufacturers was taken away by the Supreme Court judgment. In a case related to SRF Ltd, the top court had directed that importers could avail of lower duty regime if they did not take tax credits.
According to a report in a financial daily, India shipped in almost $37 billion worth of telecom instruments, computer hardware and peripherals, electronic instruments and components, and consumer electronics goods in FY15, a 14 per cent rise over the previous year.
