Budget: Custom Duty Exempt on LCD/LED Panels. What to expect?

[Vishu_fbd]

Guys how much difference is this going to make to the existing prices? Does the reductions also apply to Plasma range?

 

[gcpraveen]

so does that mean we can get LED TVs at US rate?

 

[adder]

This does not apply to plasma tvs and computer lcd monitors.

Only lcds and LED-lit based lcd tv panels of 20" and above assembled in india.

So what it means is samsung/lg tvs which are Only made in india will now be cheaper by 5%(pre vat and octroi),direct import models flagship models will cost the same.
This will have no impact on sony/panasonic/sharp/philips tvs.

Sony/samsung/lg pretty much every other lcd tv manufactures cost of replacing the lcd panel will be lower and also the cost of extended warranty may also get lower.

 

[angynagpal]

So what it means is samsung/lg tvs which are Only made in india will now be cheaper by 5%(pre vat and octroi),direct import models flagship models will cost the same.

Nope....5% reduction is only on the cost of the LED panel....doesnt mean the price would be reduced by 5% as the led panel is not the only cost incurred on the tv. Actual reduction in cost is (5% * portion cost of led panel in the total cost)

Also, keep in mind the increase in the excise duty by 2%, which is levied on the 'total' manufacturing cost. I would not be surprised if you actually see a rise in the prices of all TVs even after the 5% reduction in the Basic Custom duty of the LED Panel.

 

[adder]

Nope....5% reduction is only on the cost of the LED panel....doesnt mean the price would be reduced by 5% as the led panel is not the only cost incurred on the tv. Actual reduction in cost is (5% * portion cost of led panel in the total cost)

Also, keep in mind the increase in the excise duty by 2%, which is levied on the 'total' manufacturing cost. I would not be surprised if you actually see a rise in the prices of all TVs even after the 5% reduction in the Basic Custom duty of the LED Panel.

Well since the LED/lcd tv panel cost the most of the tv reduction of custom duties from 5% to nil should give you a benifit of 5% atleast.You also forget that 13%Vat and octroi if applicable is added on that so hypothetically let say a tv 50k (vat of 13.5% =MRP 56.75k)out of which 30k is the panel price ,now the cost of the panel is 28.5k post budget so lets assume the tv now costs 48.5k(vatof 13.5%=mrp of 55k).

You also have to understand that the 2% increase on exise duty is not applicable to all components some always have exemptions,we have to wait for the fine print.

taxes on LED lamps have also been decreased not sure whether it applies to LED emitter/bulb which is main part of any LED lamp .

 

[vktyagi]

Reduction in the cost of panel (panel only) comes to around 10% as the total duties will come down from 26.85% to 16.85%. This figure has been arrived upon by taking into consideration of (a) increase in CVD from 10 to 12 PC and abolition of Education cess for arriving at assessable value for computation of CVD.
Revised duty impact for import of other goods now shall be almost same as current rate i.e. 26.85% of the assessable value (assessable value in normal case is invoice value multiplied by Customs notified exchange rate, plus freight and insurance)

 

[Ajay_k73]

Economic Times mention that there will be 2,3% increase in TV prices. I don't know how.

 

[Vishu_fbd]

Economic Times mention that there will be 2,3% increase in TV prices. I don't know how.

Well here's how dada has bowled the bouncer!

Source Tech2: The Union Budget 2012, while having fully exempted LCD, LED TV panels from basic custom duty, has levied upon these products - an inflated excise duty. Result? The existing prices are going to shoot up by 2 - 3 percent. As a result, if you now go to the market to buy a 32-inch LCD TV, you will have to shell out Rs.800 more, than what you previously would have to - and Rs.1,200 more, if what you're buying is a 32-inch LED TV.

I can now relate when dada said he needs to be cruel... very cruel indeed.

 

[SBT]

Read somewhere (TOI?) that the LCD panels from Korea and Japan imported by big companies are already duty free. So practically what get passed to us by these companies would be the hiked up excise duty

 

[doors666]

Anyone else believe this is probably the sickest budget ever. I am always skeptical of pranab's capabilities, he's too bloody old school and not in touch with the modern ground realities. He was only fit for budgets during the eighties.

 

[andre19]

Anyone else believe this is probably the sickest budget ever. I am always skeptical of pranab's capabilities, he's too bloody old school and not in touch with the modern ground realities. He was only fit for budgets during the eighties.

This was a safe budget!! The UPA government dint want any trouble from her royal highness, mamata banerjeei!! The middle class is the fat cow to be milked!! The govenment has not cut down on its subsidies nor has it passed any reforms!! The Bill on FDI in retail is in a limbo!! I agree we have to reduce our Deficit but indirect taxes will hurt not just the middle class but every one!! The government could have Found other ways of raising revenue instead of increasing service tax and excise duty!!
I guess its high time Pranav babu retires!!:lol:

PS: These are my views, no offence to anyone!

 

[adder]

Everything is expensive now thanks to the increase in excise duty anything manufactured in india is expensive and also the increase in service tax which means your phone,internet,cable/DTH etc is going to get expensive.

Increased custom Duties on digital cameras

 

[andre19]

Everything is expensive now thanks to the increase in excise duty anything manufactured in india is expensive and also the increase in service tax which means your phone,internet,cable/DTH etc is going to get expensive.

Increased custom Duties on digital cameras

Buying Electronic goods like tv, cameras..outside India looks much better now,Damm the warranty!!!

 

[Vishu_fbd]

Buying Electronic goods like tv, cameras..outside India looks much better now,Damm the warranty!!!

I would second it, more so coz the Rs 25,000 limit for electronic goods has now been increased to 35,000. Atleast 40inches can be carried thru green channel instead of 32.

 

[shviadba]

Hii,

I m coming to India on this 19th from Malaysia. Here I got LG LED 3D TV of size 42" mode LW4500.

So as per new budget, How much I need to pay as custom? I purchased this product for 44520-INR in Malaysia if I convert the forex as per Bill.

Thanks in Advance,

Surya

 

[shviadba]

Hii,

I m coming to India on this 19th from Malaysia. Here I got LG LED 3D TV of size 42" mode LW4500.

So as per new budget, How much I need to pay as custom? I purchased this product for 44520-INR in Malaysia if I convert the forex as per Bill.

Thanks in Advance,

Surya