\n\tImported phones now attract a 12.5% countervailing duty , supposedly to offset the excise duty , but the actual excise duty levied is just 1% if the vendor claims no credit on the central value-added tax. This effectively offers a local entrepreneur who imports the phone components protection of 11.5%. The tax arbitrage will vanish with GST, as countervailing duties will be subsumed in the new tax system. The department of telecom has apparently proposed levying a basic customs duty -a levy that will not be subsumed under GST -on imported phones to protect domestic phone makers. This is a suboptimal solution. Duties on components will also have to be raised to drive local value. But that would mean a violation of the Information Technology Agreement of 1997. This could also adversely affect exports from India to other countries as the latter could raise duties in retaliation. This is wholly avoidable.<\/p>\n
\n\tWhen the import duty on a product is zero, its local sale by a domestic manufacturer is effectively sale outside the domestic tariff area. It should be considered a deemed export. Countries do not export local taxes charged on their products. Which means that the GST paid by a local phone maker should be reimbursed to him, for his product to compete on an even keel with imports, which bear no element of manufacturing tax in their home country .It will encourage them to add value in India. The GST chain will also remain unbroken, making production efficient and rendering exports from India competitive.Surely , the government can refund the local producer of a zero-tariff good 1.05 times the GST paid on manufacturing value-added.<\/p>\n\n<\/body>","next_sibling":[{"msid":58921513,"title":"How Indian smartphones are losing out to China","entity_type":"ARTICLE","link":"\/news\/how-indian-smartphones-are-losing-out-to-china\/58921513","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":58921667,"entity_type":"ARTICLE","title":"Treat local phone as deemed export: Edit","synopsis":"The Prime Minister's Office is reportedly considering raising the import duty on mobile phones to shield local phone makers","titleseo":"telecomnews\/treat-local-phone-as-deemed-export-edit","status":"ACTIVE","authors":[],"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2017-05-31 09:09:38","lastupd":"2017-05-31 09:12:58","breadcrumbTags":["GST","policy","import duty","PM office","Phone","Smartphones"],"secinfo":{"seolocation":"telecomnews\/treat-local-phone-as-deemed-export-edit"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2017-05-31" data-index="article_1">
进口手机现在吸引12.5%的反补贴税,可能抵消消费税,但实际的消费税税率是1%,如果供应商索赔没有信用在中央增值税。这有效地提供了一个当地的企业家进口手机组件保护11.5%。税收套利将消失销售税,反补贴税将包含在新的税收制度。电信部门显然已经提议征收基本关税——利维将不会被归入销售税——进口手机保护国内手机制造商。这是一个次优的解决方案。关税组件还必须提高本地值。但那将意味着违反1997年的信息技术协议。这也可能影响从印度出口到其他国家,后者可以提高关税报复。这是完全可以避免的。
当一个产品的进口关税为零,其本地销售由国内厂家实际上是销售国内关税以外的区域。它应该被视为一个出口。国家不出口地方税指控他们的产品。这意味着当地的手机制造商支付的消费税应补偿他,为他的产品与进口竞争在一个平稳、熊没有元素在本国制造业的税收,将鼓励他们在印度增加价值。消费税链也将保持完整,使生产效率和呈现从印度出口竞争力。当然,零关税的政府能退还当地生产商好1.05倍支付消费税在制造业的附加值。
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