CBIC clarification on display inputs duty a big relief: ICEA

New Delhi: Smartphone manufacturers have welcomed the clarification issued by the department of revenue on the interpretation issue surrounding display assembly imports, based on which Chinese smartphone makers Vivo and Oppo, and Xiaomi India had received show cause notices asking for penalty of a combined Rs 7259 crore.

The notice by the central board of indirect taxes and customs (CBIC) via circular dated August 18, which clarifies that import of display assembly along with back support frames that includes mechanical and plastic parts will now attract a basic customs duty of 10%.