Tuesday, February 22, 2011

Mr. Arshit Pathak, Managing Director , Kingtech Electronics ( India) pvt. Ltd.

1.Immediate implementation of GST to ensure a standard VAT across the states. Today different states have different VAT and some of them have entry tax and Octoroi. In case we operate at a uniform base price and apply taxes and other levies extra, it results in different customer price for the same product in different states and it encourages cross state movement of goods. This is not good for the industry, the local traders and even respective governments, as it leads to tax evasion. If we operate at a common customer price, by having a weighted average tax load, we end up burdening the consumers of the States which has a lower rate of tax but pays for the higher tax of other state.
2.The duty on mobile accessories like chargers and batteries need to be rationalised. When these accessories are imported as an in box item, it only attract a duty of 1%, essentially the duty of the handset. When it’s imported as an accessory the duty is as high as 27 %. This leads to huge price gap between the legitimate product and the product in grey market. Also products like Battery, charger can be a safety risk and health hazard, and therefore it’s important that use of safe and legitimate accessories be encouraged.
3.Tablet is an emerging product category and has a huge potential in digitalisation of education. An efficient tablet can be made be available at even half the price of a note book and can bridge the digital divide. We would recommend that this product should be treated like a communication device and not an IT device and duty should be rationalized accordingly. It will be great initiative towards digital education.

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