IT hardware industry asks for relaxed taxation

“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.