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) bou...