IT hardware makers seek tax clarity on routers after raids, duty demands

New Delhi: IT hardware makers have sought clarity on customs taxation of imported routers after six major companies were raided and issued show cause notices by the Directorate of Revenue Intelligence (DRI) demanding differential duties of over Rs 1,000 crore. The companies allege that the actions have led to business disruptions.

IT hardware manufacturers say a lack of clarity on router classification has resulted in the authorities sending letters, emails and summons, along with show cause notices, seeking extensive documentation and information.