The Indian Cellular Association (ICA) has sent a letter to the Tamil Nadu government seeking reduction of Value Added Tax (VAT) on mobile phone accessories and components from 14.5 per cent to 5 per cent. According to the letter, “Parts, components and accessories were not extended the revised VAT jurisdiction in March 2015 and continue to attract 14.5 per cent VAT. The circle is incomplete.”
“The VAT should be brought on par with tax levied on mobile phones. You can’t have higher VAT on the components, over and above the product,” said Pankaj Mohindroo National President, Indian Cellular Association (ICA).
ICA has also requested for Central Sales Tax exemption on mobile phones, mobile tablets and their parts, components and accessories which are manufactured in Tamil Nadu.
‘Continue benefits’
“These benefits should continue even after the switchover to GST. We are sending this letter now because the momentum to revive the handset plant at Sriperumbudur is gaining and we want small issues to get cleaned up.” Mr. Mohindroo said.
It may be recalled that during her meeting with Prime Minister Narendra Modi recently, the Chief Minister pushed the Centre to compensate the State for the revenue loss under GST
Read more at: http://www.thehindu.com/news/cities/chennai/indian-cellular-association-calls-for-vat-rationalisation/article8753725.ece