“It is strongly recommended that the rate of service tax be aligned to that of the CVD to avoid structural anomalies,” the Manufacturers’ Association for Information Technology (MAIT) said in a statement Wednesday.
Currently, the Service tax is pegged at 10 per cent while the rate of CVD is 8 per cent.
“MAIT members have unanimously and repeatedly emphasised that a long-term, holistic fiscal policy framework is needed to encourage deepening of manufacturing and to give a much needed fillip to the IT hardware industry in India,” MAIT Executive Director Vinnie Mehta said in the statement.
“Continuation of the existing 8 per cent CVD on all IT products, across the value-chain, should, therefore, be seen in this light,” Mehta added.
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