Tuesday, July 13, 2010

Confusion regarding customs duty on mobile phone


There is only one duty on mobile phone, which is duty of excise, called NCCD, which is equivalent to 1%. There
is also education cess @ 3 % on this 1%. Therefore, total duty on mobile phone is 1.03%.  Further , mobile phone is charged  excise duty @ 1.03%  on its MRP price
 ( After abatement),if domestically produced. But, if  mobile phone is imported than duty is calculated based on  value ( Assessable value +customs duty) and  abetted  MRP value ( After abatement), which ever gives less duty.
Regards
Ravindra Kumar
www.globaltaxguru.in