India reduces set-top box import and excise duty rates

Tuesday, March 1st, 2016 

finminnicinIndia’s Finance Minister, in his annual Union Budget, has announced changes to the rates of taxation for set-top boxes and their components.

The government has reduced import duties on parts and components to zero. Excise duty (levied on goods manufactured in India for home consumption) has been reduced to zero for parts and components and from 12.5% to 4% for completed products.

The objective is to reduce the cost of set-top boxes, and to encourage local manufacture.

Extract from the Union Budget:

  • Parts and components, subparts for manufacture of Routers, broadband Modems, Set-top boxes for gaining access to internet, set top boxes for TV, digital video recorder (DVR)/network video recorder (NVR), CCTV camera/IP camera, lithium ion battery [other than those for mobile handsets] being exempted.

    Old: Applicable Basic Customs Duty (BCD), Countervailing Duty (CVD), Special Additional Duty of Customs (SAD)
    New: Nil BCD, Nil CVD, Nil SAD

  • Excise duty structure on Routers, broadband Modems, Set-top boxes for gaining access to internet, set top boxes for TV, digital video recorder (DVR) / network video recorder (NVR), CCTV camera / IP camera, lithium ion battery [other than those for mobile handsets] being changed.

    Old: 12.5%
    New: 4% [without Input Tax Credit (ITC)] or 12.5% [with ITC]

  • Excise duty on parts and components, subparts for manufacture of Routers, broadband Modems, Set-top boxes for gaining access to internet, set top boxes for TV, digital video recorder (DVR) / network video recorder (NVR), CCTV camera / IP camera, lithium ion battery [other than those for mobile handsets] being exempted.

    Old: 12.5%
    New: Nil