NET ZERO IMPORTS |
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Sl . |
Description |
Amount ( Rs . Cr ) |
Conversion factors |
Assumptions |
Input tax base ( of which ) |
4,123.38 |
63.28 % |
Input base estimated at 63.28 % |
of sales of domestically |
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manufactured units |
- Goods ( current inputs - non-DTP / NB ) |
511.30 |
12.40 % |
I / O matrix 2007-08 |
- Goods ( current inputs - DTP / NB ) |
2,618.35 |
63.50 % |
I / O matrix 2007-08 |
- Goods ( capital inputs - machinery ) |
325.75 |
7.90 % |
|
- Services |
470.07 |
11.40 % |
I / O matrix 2007-08 |
Estimated output tax |
651.61 |
12.50 % |
CENVAT rate assumed @ 12.5 % |
for both inputs and output |
9 |
Net output tax on manufacturer |
153.88 |
Difference between output and |
input taxes |
104.26 |
2 % |
Concessional rate of 2 % without |
CENVAT credit |
Revenue impact for government ( 12-10 ) |
-103.24 |
Data source : Market size estimated by ITOPS 2015 study , MAIT / IMRB | |
Scenario 2- Excise Duty of 2 % on domestically manufactured |
PCs / Notebooks / Laptops under this scenario , collected from |
finished goods with CENVAT credit of the 2 % tax to eligible |
manufacturers and suppliers of parts and components etc . |
B2B buyers assuming 100 % substitution of imports by |
after giving input tax credit for B2B purchases , would be INR |
domestic production . |
1018.14 Cr . The estimated revenue expected at a concessional |
Under this scenario we assume that 100 % of the market share |
rate of Excise duty of 2 % ( without availing CENVAT credits on |
is manufactured domestically . As a result the input tax base |
inputs and capital goods ) on finished products is estimated at |
and blocked input taxes also increase . The table below shows |
INR 695.53 Cr . Thus the negative revenue impact for |
that the estimated present revenue of the government on |
government would be INR 322.61 Cr under this scenario . |
Sl . |
Description |
Amount ( Rs . Cr ) |
Conversion factors |
Assumptions |
Market size ( Desktops + Laptops ) FY15 ( of which ) |
20,362.80 |
61.1 |
USD 3332.7 mln @ Rs . |
61.1 / USD ; ITOPS study |
20,362.80 |
100 % |
Domestic manufacturing |
estimated at 100 % of total sales |