Mobile phones, PCs to become cheaper

NEW DELHI: Import of mobile phones, computer printers and coking coal will become cheaper. Finance minister Pranab Mukherjee on Tuesday reduced the counter veiling duty ( CVD) on import of mobile phones to 1% from 5%.

Earlier, 1% CVD was allowed on import of mobile phones only when cenvat credit was not claimed. Now, this condition has been removed. Mukherjee also extended the concessional rate of 5% CVD and nil special additional duty (SAD) on import of parts of all computer printers by actual users.

FM extended retail sale price based assessment with an abatement of 35% to many of the items so that disputes regarding valuation are avoided. He also exempted any waste, scrap or parings arising in course of manufacturing of these items as a measure of relief.

He also exempted seven specified parts of personal computers from SAD. This will lead to lowering of prices of computers in the country. In order to help the iron and steel industry, FM gave duty exemption to certain types of coking coal imported for iron or steel manufacturing.

He also restored excise duty (and CVD) exemption on silicon wafers imported for making solar cells/modules. In an attempt to provide better tax regime to manufacturers, Mukherjee proposed that physical verification of their premises would not be necessary for new registrants; visits to such units by central excise officers would be permitted only with due authorisation as in case of SSI units; they would be required to file only quarterly returns; and a simplified return format will be prescribed.