If you are planning to buy the smartphone then you have to shed more money, yes you heard it right as the Government has imposed 10 percent customs duty on mobile phone and accessories like wire headset, Microphone, and Receiver, Key Pad, USB Cable etc, with immediate effect to boost domestic manufacturing.
According to the official statement, the Government has imposed 10 percent basic customs duty (BCD) on Cellular mobile phones and specified parts of cellular mobile phones like charger, battery, wire headset, Microphone and Receiver, Key Pad, USB Cable etc.
It added that present exemption from basic customs duty on specified parts of mobiles -- printed circuit board assembly (PCBA), camera module, connectors display assembly, touch panel, cover glass assembly, vibrator motor, and the ringer will continue.
Further, inputs and raw material for the manufacture of parts of above-specified electronics goods including mobile phones will also continue to be exempt from BCD, the statement further added.
Counterpoint Research also says that as much as 80 percent of the phones sold in India in the March quarter were locally made.
This shows that Government wants more companies to set up the manufacturing plant in India as part of ' Make in India' initiative.
Meanwhile, the Government has imposed 12 percent tax rate on mobile phones.