Budget 2011: ELCINA demands implementation of GST wef April 2011

ELCINA has asked for retention of 10% Excise Duty, considering the fragile global economic recovery.

By Agencies | Feb 10, 2011, 02.40 PM IST

NEW DELHI: ELCINA (Electronic Industries Association of India) has called for the implementation of GST wef April 2011; 12% GST (8% Excise + 4% VAT) on electronics value chain, specially components, parts and assemblies.

Apart from this it has also recommended the following key points:

10% Excise Duty be retained, considering the fragile global economic recovery. 4% SAD be abolished.

Streamlining excise procedures on import of inputs/raw materials for electronic components at 0% to equate with import of finished components without any procedural hassles.

4% Vat on all electronic components and assemblies.

In case of any delay in implementing GST, Zero CST on electronics value chain till such time as GST is implemented

Finished electronic equipment import be subject to atleast 10% Customs Duty to encourage local manufacturing

Mandate local content in key sectors such as telecom, rural IT infrastructure, e-governance projects (similar to 30% under DOFA in defence sector) and in special giveaway schemes such as the Tamil Nadu Government scheme of donating TVs.

Do not implement ITA -II and do not include electronic components and parts in any future FTA’s

Zero duty on all inputs for manufacture of electronic components and parts, including dual use inputs for all ITA-1 items and correct inverted duty on others

Promote Domestic Manufacturing & Value Addition

Policy for encouraging local manufacture of champion products such as CFLs, Solar Lighting, Mobile accessories (Chargers) etc. Simple products required in large quantity with high employment potential.

For Electronic Components and Parts have high value addition – Allow manufacturers to retain Excise Duty paid through PLA as interest free loan for 5 years and Income Tax benefit related to value addition.

Promote hardware manufacturing zones – clusters

Implement recommendations of Report by Task Force set up by DIT’s released in December 2009

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