Implications on IT industry viability

  • Introduction of 4% non-MODVAT special addition duty (SAD)
    • Effective duty differential not significant to restore confidence.
    • No measures to curb grey market.
Pre-Budget Post-Budget
Item Duty on
finished goods		 Wtd. avg. duty
on inputs		 Effective
differntial		 Wtd. avg. duty
on inputs		 Effective
differntial

PC
Monitor
22%
22%
16.14%
20.78%
5.86
1.22
14.8%
20.28%
7.20
1.72

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