Union Budget 2015: Imported Mobiles, Tablets Price May Go Up, Local Producers Gain

BENGALURU: In a move to boost local manufacturing of mobile phones and tablets, the government today increased duty benefits for domestic producers of these electronic items.

Excise duty structure for mobiles handsets, including cellular phones, is being changed to 1 percent without CENVAT credit or 12.5 percent with CENVAT credit, Finance Minister Arun Jaitley said while presenting the Budget in Parliament.

Earlier the duty structure for mobiles was 6 percent with CENVAT credit.

For tablet computers, the duty structure is “2 percent without CENVAT credit or 12.5 percent with CENVAT credit.”

“Manufacturer or producer of final product is allowed to take CENVAT credit. This would encourage local manufacturing rather then import,” IESA Chairman Ashok Chandak told PTI.

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 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, 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 percent to Nil,” Jaitley said.
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