After the announcement of Union Budget 2023, ELCINA has organized a post budget webinar titled “Decoding Union Budget 2023-24” in association with Lakshmikumaran & Sridharan, where implications of tax proposals were analysed by their experts Mr Nirav Sanjay Karia- Partner in Indirect tax practice, Mr Karanjot Singh- Associate Partner, Ms Shweta Walecha-Director, and Ms Jyoti Pal- Associate Partner.
Decoding Union Budget 2023-24 webinar
The webinar highlighted implications of the tax proposals on GST, Customs and Income tax. The session was attended by members from Electronics Industries.
Ms. Jyoti Pal, Associate Partner at Lakshmikumaran & Sridharan said, “Some changes have been made in Tariff Heading 8524 of the Customs Tariff Act. Separate tariff items have been added for flat panel display modules for certain categories of ADPM (Computers), mobile phones, television sets/ LCDs, and residual categories for others. Tariff Heading 8517 has also been amended”.
ELCINA stated that the government’s decision to eliminate import duty on camera lens and its components will benefit mobile phone manufacturers in India. This exemption should be extended to all other electronic product segments that use camera modules, electronic components. In this regard Rajoo Goel, Secretary General at ELCINA said, “The decision to remove import duty on the camera lens and its components will help mobile phone companies and electronic manufacturing services (EMS) companies shortlisted under the PLI scheme.”
“The finance minister has also announced a reduction of customs duty on parts of open cells of TV panels to 2.5 per cent from 5 per cent earlier. All this will create demand for electronics hardware and create jobs as well in the electronics industry. The Finance Minister has laid a lot of emphasis on skill development for green energy products, drones, robotics, and IoT. All these are positive developments for the electronics sector, added Mr. Goel.
ELCINA has recommended long term and enhanced support for Components manufacturing under PLI and SPECS Schemes and include EMS sector under SPECS scheme to provide subsidy against capital investments. This will give required thrust to value addition and boost to electronics manufacturing in all segments.