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
Source: CBIC, Dept. of Revenue, Ministry of Finance, Govt. of India
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