INDIA BUSINESS WORLD - APRIL - MAY 2007
The Month that was ...

GPRS MOBILES WON'T ATTRACT HIGHER DUTY

THE Central Board of Excise and Customs (CBEC) has gone back on a move to classify GPRS phones as radio navigational apparatus (better known as satellite phones) for tax purposes. This means GPRS-enabled phones will face a 4% Customs duty rather than the 34% applicable on satellite phones. The move comes as a major relief to mobile phone and PDA manufacturers like Nokia, Samsung, Blackberry, Motorola, PalmOne, O2, i-mate and HP. GPRS phones also allow interact access and generally carry features such as web-camera and MP3. These include widely-used models such as the Nokia N series, Samsung Ultra series, LG C series and Motorola's Ming and ROKR phones and are usually priced above Rs 10,000.

In January 2007, a circular from the Office of the Commissioner Customs classified HP's iPAQ 6515 GPRS phone as a GPS receiver, subjecting it to a Customs duty of 34% instead of 4% levied on mobile phones.