SPOTLIGHT ON INDIAN ELECTRONICS Spotlight on Indian Electronics | Page 79

NET ZERO IMPORTS
Annexure A : Computation of tax-related disability
The following table provides an indicative computation of The tax related disability ( including disability on account of blocked disability for domestic manufacturers of ITA1 low value input tax credits ) burden borne by the domestic manufacturers vis-àaddition products in the IT systems and hardware segment vis importers , is 6.47 %. ( notebooks , PCs , etc .). All values are normalized to a domestic selling price of USD100 .
Particulars
Rate
Domestic manufacturing
Imported finished good
Base Cost
-
63.19
67.84
Freight
-
3.13
3.42
-
66.32
71.25
Insurance
1.125 %
0.75
0.80
CIF value
67.07
72.06
Loading charges
1 %
0.54
0.72
Assessable Value
67.61
72.78
Countervailing Duty - 3 ( 1 ) of Custom Tariff
12.50 %
6.85
8.54
Excise Duty
12.50 %
1.60
-
CST on 50 % local procurements
2 %
0.14
-
VAT Reversal on 50 % local procurements
3 %
0.22
-
Education Cess on import
3 %
0.21
0.26
Special Additional Duty
4 %
2.48
-
79.10
81.57
Entry tax
1 %
0.15
Cenvatable
-10.93
-
68.32
81.57
Clearing charge
0.38
0.38
Local transportaton
0.38
0.38
Landed cost
69.08
82.33
Conversion cost
5.03
74.11
Finance cost
4.93
Total cost
79.04
Margin
3.95
83.00
Excise Duty
10.37
CST
1.87
VAT
4.76
4.12
100.00
86.45
-
Disability due to taxes
17.72
12.91
Spotlight on Indian Electronics 2016 | 79