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<\/span><\/figcaption><\/figure>New Delhi: Smartphone manufacturers have welcomed the clarification issued by the department of revenue<\/a> on the interpretation issue surrounding display assembly imports, based on which Chinese smartphone makers Vivo and Oppo, and Xiaomi<\/a> India had received show cause notices asking for penalty of a combined Rs 7259 crore.

The notice by the central board of indirect taxes and customs (CBIC) via circular dated August 18, which clarifies that import of display assembly along with back support frames that includes mechanical and plastic parts will now attract a basic customs duty<\/a> of 10%.

Earlier, field officials of the revenue department investigating customs duty evasion by mobile phone manufacturers had arrived at an interpretation that including the mechanical parts as part of the display assembly would peg the customs duty at 15%.

However, a technical document shared by the ministry of information technology (MeitY) had clarified the interpretation issue to the revenue department.

“This circular is a big relief to the Industry and will avoid unnecessary litigation,\" said Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA<\/a>) that represents mobile manufacturers in India.

However, Oppo, Vivo and Xiaomi<\/a>, to whom the department of revenue<\/a> intelligence (DRI) had issued show cause notices demanding penalties totalling to Rs 7259 crore, had to fight the matter in courts. The show cause notices will not be rescinded, an industry executive who wished not to be named told ET.

The revenue department circular clarifies that display assembly of cellular mobile phones includes the touch panel, cover glass and other sub-parts, and if the assembly imported comes merely with a back support frame of metal or plastic, such an assembly should be treated as a display assembly, attracting BCD of 10%.

The circular also included an annexure with pictures and schematic representations of the items considered as part of the display assembly.

However, MeitY also stated that if the display assembly comes with additonal parts such as mechanics or any other items not mentioned as part of the display assembly, the whole assembly will attract a BCD of 15%.

\"Tax<\/a><\/figure>

Tax body clarifies on customs duty on mobile phone inputs, big relief to industry<\/a><\/h2>

Import of display assembly of cellular mobile phones along with back support frames will attract basic customs duty (BCD) at the rate of 10%.<\/p><\/div>

\"\"
<\/span><\/figcaption><\/figure>New Delhi: Smartphone manufacturers have welcomed the clarification issued by the department of revenue<\/a> on the interpretation issue surrounding display assembly imports, based on which Chinese smartphone makers Vivo and Oppo, and Xiaomi<\/a> India had received show cause notices asking for penalty of a combined Rs 7259 crore.

The notice by the central board of indirect taxes and customs (CBIC) via circular dated August 18, which clarifies that import of display assembly along with back support frames that includes mechanical and plastic parts will now attract a basic customs duty<\/a> of 10%.

Earlier, field officials of the revenue department investigating customs duty evasion by mobile phone manufacturers had arrived at an interpretation that including the mechanical parts as part of the display assembly would peg the customs duty at 15%.

However, a technical document shared by the ministry of information technology (MeitY) had clarified the interpretation issue to the revenue department.

“This circular is a big relief to the Industry and will avoid unnecessary litigation,\" said Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA<\/a>) that represents mobile manufacturers in India.

However, Oppo, Vivo and Xiaomi<\/a>, to whom the department of revenue<\/a> intelligence (DRI) had issued show cause notices demanding penalties totalling to Rs 7259 crore, had to fight the matter in courts. The show cause notices will not be rescinded, an industry executive who wished not to be named told ET.

The revenue department circular clarifies that display assembly of cellular mobile phones includes the touch panel, cover glass and other sub-parts, and if the assembly imported comes merely with a back support frame of metal or plastic, such an assembly should be treated as a display assembly, attracting BCD of 10%.

The circular also included an annexure with pictures and schematic representations of the items considered as part of the display assembly.

However, MeitY also stated that if the display assembly comes with additonal parts such as mechanics or any other items not mentioned as part of the display assembly, the whole assembly will attract a BCD of 15%.

\"Tax<\/a><\/figure>

Tax body clarifies on customs duty on mobile phone inputs, big relief to industry<\/a><\/h2>

Import of display assembly of cellular mobile phones along with back support frames will attract basic customs duty (BCD) at the rate of 10%.<\/p><\/div>