|
|
NET ZERO IMPORTS |
|
|
Sl. |
Description |
Amount( Rs. Cr) |
Conversion factors |
Assumptions |
4
5 6
B2B sales |
10,181.40 |
50 % |
Estimated at 50 % of total sales |
|
|
|
of domestically manufactured |
|
|
|
units |
Output tax base of B2B sales 8,145.12 80 %
Input tax base( of which) |
12,885.58 |
63.28 % |
Input base estimated at 63.28 % |
|
|
|
of sales of domestically |
|
|
|
manufactured units |
- Goods( current inputs- non-DTP / NB) 1,597.81 12.40 % I / O matrix 2007-08- Goods( current inputs- DTP / NB) 8,182.34 63.50 % I / O matrix 2007-08- Goods( capital inputs- machinery) 1,017.96
7.90 %- Services 1,468.96 11.40 %
I / O matrix 2007-08
7 8
- Services 327.29 12.50 % Estimated output tax 2,036.28 12.50 % Estimated input tax( of which) 1,555.42
CENVAT rate assumed @ 12.5 % for both inputs and output
- Excise duty( current inputs- non DTP / NB) 199.73- Excise duty( current inputs- DTP / NB) 1,022.79
12.50 % 12.50 %
- Excise duty( capital inputs) 127.25 12.50 %- Service tax 205.65
14.00 %
9 Net output tax on manufacturer 480.86
Difference between output and input taxes
10 Tax revenues collected by the government( Current tax on domestic output + current tax on imports)
11 Estimated output tax at concessional rate for manufacturer
1,018.14
325.80 2 %
12 Tax revenues collected by the government under concessional rate( Output tax at concessional rate + input taxes excl. input tax on DTP / NB inputs- output tax @ 2 % on B2B sales)
695.53 CENVAT rate assumed @ 12.5 % for both inputs and output
13 |
Revenue impact for government( 12-10) |
-322.61 |
Data source: Market size estimated by ITOPS 2015 study, MAIT / IMRB |
Revenue impact of import substitution of key components in manufacture of PCs |
The revenue impact of extension of the differential duty regime |
In fact, there would be a modest reduction in the revenue cost |
for PCs to some of the key components, such as populated |
for the government, due to an increase in revenues generated |
PCBs and SMPS, which constitute approx. 13 %-15% of the |
from domestically manufactured components, as estimated in |
total cost of a PC, would not be significant for the government. |
the example below: |
#
1
Particulars
Differential duty regime of 2 % for PCs manufactured in India, with complete excise duty exemption for all components;( 12.5 %- 2 %) – 0 % input tax credit Note:
Net gain to PC manufacturer
10.5 %
Spotlight on Indian Electronics 2016 | 76