• In the General Budget 2018-19 presented in Parliament, Arun Jaitley acknowledged there is substantial potential for domestic value addition in electronics sector.
• To further incentivise the domestic value addition and Make in India, the Finance Minister proposed to increase customs duty on mobile phones from 15% to 20%, on some of their parts and accessories to 15% and on certain parts of TVs to 15%.“ This measure will promote creation of more jobs in the country. In fact, this will make the domestic items cheaper than imported ones and will generate more demand which, in turn, will create more employment opportunities for the people at large.
• Unless otherwise stated, all changes in the rates of duty take effect from the midnight of Ist February/2nd February, 2018.
• BCD on specified parts or sub-parts or accessories of cellular mobile phones, namely, Heat Dissipation Sticker Battery Cover, Sticker Battery Slot, Protective film for main lens, Mylar for LCD EPC, Film-front flash is being increased from 10% to 15% by increasing the tariff rate.
• BCD on specified parts or sub-parts or accessories of mobile phones namely, battery cover, front cover (with Zinc casting), middle cover, back cover, main lens, camera lens is being increased from 10% to 15% by increasing the tariff rate.
• BCD on specified parts or sub-parts or accessories of cellular mobile phones, namely, PU case, sealing gasket is being increased from 10% to 15% by increasing the tariff rate.
• BCD on specified parts or sub-parts or accessories of cellular mobile phones namely sealing gasket/cases from PE, PP, EPS, PC and all other individual polymers or combination/combination of polymers, SIM Socket/other mechanical items (plastic), conductive cloth, LCD conductive foam, LCD foam, BT foam is being increased from 10% to 15% by increasing the tariff rate.
• BCD on Microphone Rubber Case, Sensor Rubber Case/Sealing Gasket including sealing gaskets/cases from rubbers like SBR, EPDM, CR, CS, Silicone and all other individual rubbers or combination of rubbers for use in manufacture of mobile phones is being increased from 10% to 15%.
• BCD on screws of cellular mobile phone is being increased from 10% to 15%.
• BCD on SIM socket/other mechanical items (metal) of cellular mobile phone is being increased from 10% to 15%. Consequently, SIM socket/other mechanical item (metal) of cellular mobile phone will attract a tariff rate of 15%, without any actual user condition.
• BCD on cellular mobile phones is being increased from 15% to 20%.
• BCD on charger or adapter of cellular mobile phones is being increased from 10% to 15%. However, BCD on goods other than charger or adapter of cellular mobile phones is being retained at 10%.
• BCD on cell/battery of cellular mobile phones is being increased from 10% to 15% by increasing the tariff rate on goods. However, BCD on goods other than cell/battery of cellular mobile phones is being retained at 10%.
• BCD on Lithium-ion battery is being increased from 10% to 20% by increasing the tariff rate on goods.
• BCD on microphone, wired headset, receiver of mobile phones is being increased from 10% to 15% by increasing the tariff rates on goods.
• BCD on keypad, GSM antenna or antenna of any technology of cellular mobile phones is being increased from 10% to 15%.
• BCD on side key of cellular mobile phones is being increased from 10% to 15% by increasing the tariff rate.
• BCD on USB cable of cellular mobile phones is being increased from 7.5/10% to 15% by increasing the tariff rate on goods.
• BCD on smart watches is being increased from 10% to 20% by increasing the tariff rate.
• Concessional 5% BCD on parts of cellular mobile phones is being withdrawn.
• BCD on inputs or parts of manufacture of PCBA and moulded plastics of charger or adapter of cellular mobile phone is being exempted.

The focus of the Taxes Committee is to solve issues related to direct and indirect taxes and provide necessary inputs via consultations and trainings.

Key Objectives:

1. Solve issues pertaining to direct and indirect taxes and take it up with relevant ministry.
2. Solve issues related to tax challenges which are not favorable for Make in India initiative.
3. Creating awareness about new amendments with respect to new tax laws.

Who Should Join:

Registered members of The Mobile Association, retired government officials, academia and others.

Please click here for expressing interest to join as a key member of the Taxes Steering Committee