Now Pay duty on flat panel TV imports from August 26

karthiksk

New Member
Joined
Mar 13, 2013
Messages
19
Points
0
Location
Bangalore
NEW DELHI: Now, get ready to shell out more for getting a flat panel television set from Thailand, Dubai or Singapore.

Starting August 26, the government has decided to levy 36% customs duty on LCD and LED television sets that passengers bring along with them as part of the duty-free baggage allowance of Rs 35,000.

The price arbitrage had turned into a lucrative business proposition with several carriers taking flights to South East Asia and making a killing in the domestic market.


For example, a 32-inch TV set in Thailand costs around Rs 17,000 to Rs 18,000 and in India it ranges between Rs 30,000 and Rs 35,000. A customer who bought a 42-inch TV in Dubai some days ago paid Rs 33,000, whereas a comparable model of the same brand available on a e-retailer's website costs around Rs 55,000.

With the duty if the TV set was imported from Dubai, the cost would add up to around Rs 45,000, which still leaves a price advantage for such imported sets but not sufficient enough to let carriers thrive on this business.

When contacted, revenue Secretary Sumit Bose confirmed that the move to stop import of flat panel television sets as part of the baggage allowance rules had been taken to stop the misuse of the scheme. "The local manufacturers had complained," Bose told TOI, adding that manufacturers had said that couriers were being used to import flat panel television sets using the baggage allowance rules.

Bose said passengers would be allowed to import such TV sets but they have to pay duty at the prevailing rate. He also dismissed speculation that the move has been triggered by the need to trim the current account deficit (CAD). The government has been grappling with a widening CAD which has been blamed for the rupee's sharp slide against the dollar. It has taken several steps to stem the rupee's fall and has talked about curbing non-essential imports.

According to the baggage rules all passengers above 10 years returning after more than three days stay abroad were allowed to bring articles up to a value of Rs. 35,000, if these are carried on the person or in the accompanied baggage of the passenger.

Indian TV manufacturers cheered the move. "We have been waiting for it for a long time. "This kind of imports have been troubling us. It's a win-win situation as the government will also get revenue," said Sunil Nayyar, head of sales Sony India, adding that such imports added up to 10-15% of domestic sales.

According to a notification, the revenue department has decided to "disallow import of flat panel (LCD/LED/Plasma) television as part of free baggage allowance". The rule comes into effect from August 26.

The availability of cheap television sets in Thailand, Dubai and Singapore had spawned a huge market from India as tourists took advantage of the price difference due to the baggage allowance.

Customs officials said the airports in major metros witnessed a sharp increase in imports of TV sets from largely from Thailand and Dubai by tourists from home. Passengers alighting from flights from Thailand and Dubai could be seen carrying huge flat panel television sets. "The price difference was almost double. It was largely from Thailand and Dubai," said a customs officer, who did not wish to be identified.

Some industry experts said that the practice had been institutionalised and even some established electronics malls in Thailand and Dubai delivered the TV sets at the airport for the convenience of the passengers flying to India. The price differential also triggered tourism packages which were built around the purchase of a flat panel TV.



Source: Pay duty on flat panel TV imports from August 26 - The Times of India
 
Check out our special offers on Stereo Package & Bundles for all budget types.
Back
Top