Changing Landscape in Electronics Manufacturing in India-Post Union Budget 2020

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Dated: 04.02.2020

Changes in Budget for Electronics Manufacturing


The Govt. of India has made major changes into the Electronics Manufacturing post Union Budget 2020. The key Changes are given below-

  • Dividend distribution tax (20%) abolished it will be taxed in hands of recipient (recipient will be able to utilize double taxation treaties)
  • New schemes for promoting electronics manufacturing will be announced very soon      
  • Increase in duty of finished products of following to increase manufacturing in India:
  • a) Compressors of AC & Refrigerator to 12.5%
  • b) BCD on many other items in chapter 84
  • c) BCD on optical disk drives
  • d) BCD on MP3, MP4 and MPEG players
  • e) BCD on audio cassettes
  • f) BCD on power charger, adaptors except covered in ITA agreement will be at 20%
  • g) BCD on all goods covered under 8509/8510/8515/8516 face increase in import duty
  • Duty imposed on Fingerprint readers/scanner for used in Mobile phones
  • Duty increased in PCBA of mobile phones to 20%
  • Duty increase in vibrator motor from 1st April 2020 and Display Assembly from October 2020
  • BCD to be exempt on parts of microphones
  • BCD on all earphones and headphones at 15%
  • Split in HS Codes for Open Cell for TV’s (8529 9030) new category introduced
  • 10% BCD on COLOR TV picture tube for manufacture of cathode ray television
  • Split in Solar Cell classification to make duty on assembled solar cell at 20%
  • Increase in duty of Finished EV’s


Download the Notification’s Here:

Customs Notfn 02-2020

TRU 01 Notice


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