Winning Bizness Desk
Mumbai. The prices of your mobile phone may increase in the coming time as CBIC has issued a clarification regarding levying custom duty on mobile phone parts. The Central Board of Indirect Taxes and Customs (CBIC) has said that imports of mobile phone display assemblies that come with components such as speakers and SIM trays will attract basic customs duty (BCD) at the rate of 15 per cent. The import of mobile display assembly units currently attracts customs duty at the rate of 10 per cent. But there is no duty on import of individual equipment used in display assembly. The display unit of a mobile phone includes parts such as touch panel, cover glass, LED backlight and FPC.
What prompted BCD ?
CBIC has said that there have been incidents of giving wrong information in the import of display assemblies. To overcome this situation, changes have been made in BCD. Saurabh Agarwal, Tax Partner, EY India, said that with this move, the situation before mobile phone manufacturers regarding import of display assembly will now be clear.
What ICEA said ?
Mobile phone industry body India Cellular and Electronics Association (ICEA) said that this circular will send a positive message to all investors, Indian and foreign. Sangathan's chairman Pankaj Mohindroo said, "This circular is a big relief to the industry and will not create unnecessary controversy."
What CBIC said ?
In a circular sent to its regional offices, the CBIC said that if a mobile phone display unit is imported only with a back support frame made of metal or plastic, it will attract tax at the rate of 10 per cent. However, a back support frame made of metal or plastic, if imported separately, will attract customs duty of 15 per cent.
