HomeNewsNews Details
News Details
Date: 07-03-15

Budget FY 2015-16 points for the electronics and semiconductor industry in India

Below are the some of the important announcements made in the Budget FY 2015-16 exclusively for electronics and semiconductor design and manufacturing:

1. Boost for indigenous manufacturing of Mobile Handsets: Excise duty structure for mobile handsets including cellular phones is being changed from 1% without CENVAT credit or 6% with CENVAT credit to 1% without CENVAT credit or 12.5% with CENVAT credit.

2. Boost for indigenous manufacturing of Tablets: Excise duty structure of 2% without CENVAT credit or 12.5% with CENVAT credit is being prescribed for tablet computers. To facilitate this, parts, components and accessories (falling under any Chapter) for use in the manufacture of tablet computers and their sub-parts for use in manufacture of parts, components and accessories are being fully exempted from Basic Customs Duty (BCD), Countervailing Duty (CVD) and Special Additional Duty of Customs (SAD).

3. Boost for indigenous manufacturing of TVs: Reduction of BCD of Back Light Unit Module for use in the manufacture of LCD/LED TV panels from 10% to Nil and that of Organic LED (OLED) TV panels from 10% to Nil.

4. Boost for indigenous manufacturing of ITA Products: To address the problem of CENVAT credit accumulation, for all goods except populated PCBs, falling under any Chapter of the Customs Tariff, for use in manufacture of Information Technology Agreement (ITA) bound goods (where BCD is Nil), SAD has been reduced from 4% to Nil.

5. Boost for indigenous manufacturing of LED Lights: SAD on inputs for use in the manufacture of LED drivers and MCPCB (Metal Clad Printed Circuit Board) for LED lights, fixtures and LED lamps has been reduced from 4% to Nil. Excise duty on inputs for use in the manufacture of LED drivers and MCPCB for LED lights, fixtures and LED lamps has been reduced from 12% to 6%.

6. Boost for indigenous manufacturing of Medical Electronic Products: BCD, Excise Duty / CVD and SAD have been fully exempted on specified raw materials [battery, titanium, palladium wire, eutectic wire, silicone resins and rubbers, solder paste, reed switch, diodes, transistors, capacitors, controllers, coils (steel), tubing (silicone)] for use in the manufacture of pacemakers. BCD on certain specified inputs for use in the manufacture of flexible medical video endoscopes has been reduced from 5% to 2.5%.

7. Boost for indigenous manufacturing of Solar Photovoltaic Cells: Excise duty on round copper wire and tin alloys for use in the manufacture of Solar PV ribbon for manufacture of solar PV cells reduced to Nil rate subject to certification by Department of Electronics and Information Technology (DeitY).

8. Boost for indigenous manufacturing of integrated circuit (IC) modules for smart cards: Excise duty on Wafers for use in the manufacture of integrated circuit (IC) modules for smart cards reduced from 12% to 6%.

9. Boost for indigenous manufacturing of Microwave Ovens: BCD on Magnetron upto 1KW for use in the manufacture of microwave ovens reduced to Nil.

10. Rationalization of tariff structure for manufacture of optical fibre cables: High Density Poly Ethylene (HDPE) for use in the manufacture of telecommunication grade optical fibre cables reduced from 7.5% to Nil.

0 Comments
Default user
Related News