Local PCs to Cost More
Techtree News Staff, Mar 01, 2005 0000 hrs IST
According to hardware manufacturers' body MAIT, locally made PCs will be costlier while imported ones will be cheaper.
The Manufacturers Association of Information Technology, a body representing the hardware manufacturers in the country, said that prices of desktops will increase slightly while fully-imported peripherals and notebooks will be cheaper by 5 percent.
This is primarily due to the introduction of additional 4 percent countervailing duty on direct imports, above the current duties. "The introduction of additional 4 percent CVD will provide a level playing field to the local IT manufacturers against direct imports. However, in case of the PC industry, this would have been advantageous, if it were applicable only on finished products and not on imported input components," said Vinnie Mehta, Executive Director, MAIT.
"Currently, with no excise duty on the finished PC, this would lead to still additional CENVAT overflow and a local manufacturer will have to absorb the additional CVD on inputs. Hence, the prices of desktop computers manufactured in India will increase slightly, however fully imported peripherals, notebooks, servers etc. will be cheaper by 5 percent," added Mehta.
During the Union Budget presented yesterday to the Parliament, Finance Minister P Chidambaram had addressed the problem of inverted tariff structure in the IT manufacturing industry owing to the implementation of the IT Agreement under which a list of 217 items would attract nil customs from March 01, 2005. The Government has announced that all inputs for manufacturing of any IT Agreement items would also be made available at nil customs duty.
Mehta said, "Anomalies of inverted customs tariff structure arsing out of the implementation of the IT agreement have been addressed. Manufacturers of ITA products can now import input raw materials, parts, components and other dual-usage items not covered in the IT Agreement, at nil customs duty, on basis of end-use certification."
Currently there is no sales tax on direct import and also the forthcoming Value-added tax cannot be administered on such imports, clarified a statement by MAIT.
Related News:
Budget 2005-06 Highlights
USER COMMENTS
techtree plz list those 217 items
by chetan, ulhasnagar, on Mar 02, 2005 12:49 PM, Report abuse Reply
Ya can we get a link where we can see those products.
by Sumedh, Pune, on Mar 02, 2005 07:17 PM, Report abuse
go to www.cbec.gov.in, and then do some searching. Otherwise go to indiabudget.nic.in. You could also search for more sites by googling india+government+finance+budget
by Pal, New Delhi, on Mar 03, 2005 08:59 AM, Report abuse
by Pal, New Delhi, on Mar 03, 2005 09:00 AM, Report abuse
Hell, here we are trying to reduce prices of technology and these people are increasing PC prices. I feel this was an uninspiring budget by Chidambaram. And not just cos of PC prices :). there are lot other factors. Such a nut, instead of giving a level playing field, he has gone ahead and made imports cheaper. Local manufacturers like HCL and Zenith would rather import and sell, than assembling their stuff here.
by DHARMESH GANDHI, VALSAD-GUJARAT-9825390712, on Mar 02, 2005 11:06 AM, Report abuse Reply
will graphics cards and motherboards be any cheaper?
by somebody, Kolkata, on Mar 01, 2005 02:42 PM, Report abuse Reply
by v.k.kannan, chennai-india, on Mar 01, 2005 02:16 PM, Report abuse Reply
Hell, here we are trying to reduce prices of technology and these people are increasing PC prices. I feel this was an uninspiring budget by Chidambaram. And not just cos of PC prices :). there are lot other factors. Such a nut, instead of giving a level playing field, he has gone ahead and made imports cheaper. Local manufacturers like HCL and Zenith would rather import and sell, than assembling their stuff here.
by Halcyon, Pune, on Mar 01, 2005 02:09 PM, Report abuse Reply
Could someone specify some of the 217 items not attracting customs duty?
by Anonymous, Mumbai, on Mar 01, 2005 01:03 PM, Report abuse Reply
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Local PCs should in fact be made to cost less, if our own PC is patriotic which is highly doubtful. The trio has been sold out to the big boys.
by chanakya, chanakyapuric, on Mar 04, 2005 04:30 PM, Report abuse Reply