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Why would the unclaimed ITC be a loss? One can claim the unutilized ITC to be refunded. And why only "greedy importers"? Add "stupid government" to the queue too.Issue is this IGST can be set-off only against sales in the financial year. If the stock remain unsold over a year then you incur losses. Thanks to the greedy importers.
Actually, it depends on the brand. certain brands are cheaper in the US than UK. I know this because i whenever i buy Hi Fi equipment, I ensure that I'm buying cheaper than either UK or US prices (need not be both). Sadly, this means that I'll never end up buying either Klipsch, Polk Audio or BIC in India (i have been eyeing the Klipsch RP600Ms for a long time now but the price just does not make any sense).Mass market audio products and electronics in India are at par and often cheaper than western prices these days.
Pricing and discounts are primarily driven by volumes .. You can see a clear example in hifi with UK hifi prices often being lower than the US - which is exactly the opposite for pretty much everything else..
Primarily because UK still has a thriving market for hifi separates unlike the US ..
As for India, extremely few people buy hifi separates - A typical high street JBL dealer will sell a 1000 boomboxes before he can move 1 Control-one pair even though both are not priced too differently.. SO he is going to keep the bookshelves on backorder with no incentive to discount 'em..
+ to @rikhav 's point: whatever small market exists is now fragmented across various brands
no ITC on Basic Customs Duty. However, BCD should be offset to some extent cuz most equipment gets manufactured and shipped from China so the freight to India would be much lower than US and UK.Not sold = get the unutilized ITC refunded
Sold = claim ITC
So, I don't understand where the loss is.
With All due respect, That may not be an accurate assessment. I got my chord mojo from headphone zone for 24K which was cheaper than both US and UK prices at the time of purchase. Many a time, their other offerings such as the Audeze Mobius, Sony 1000xm3 and Meze 99 neos are priced cheaper than us/uk prices.Headphone zone is the distributor of Chord Electronics in India. As far as I've heard, being an official dealer, Chord does not allow them to give away discounts, When I was in the market to purchase my Hugo 2, the MRP was $2695 in the US, and an equivalent £1800 in the UK. HPZ sold it for Rs.1.69L, which at the time, I felt to be reasonable. Still they seldom give out offers and discounts like EOY sales etc which most dealers abroad give out on a regular basis. So, IMHO, HPZ does swindle the customer, but they pretend to not do so.
ITC is applicable on IGST (and compensation cess if applicable) paid. As far as I know, BCD is not offset anywhere irrespective of where goods are shipped from - I'm not sure I understand why the port of origin would even figure in this.no ITC on Basic Customs Duty. However, BCD should be offset to some extent cuz most equipment gets manufactured and shipped from China so the freight to India would be much lower than US and UK.
This is true about many other devices too : especially fiio and audio technica are cheaper in India than Europe and US. I too saw this mojo pricing before. It’s the cheapest I have seen so far in any country.With All due respect, That may not be an accurate assessment. I got my chord mojo from headphone zone for 24K which was cheaper than both US and UK prices at the time of purchase. Many a time, their other offerings such as the Audeze Mobius, Sony 1000xm3 and Meze 99 neos are priced cheaper than us/uk prices.