The Indian Cellular Association on Sunday urged the Punjab Government to follow internationally accepted taxation practice and treat mobile chargers as an integral part of the phone.
The demand came in the wake of Punjab VAT Department demanding VAT separately on mobile charger by treating it as an accessory for the purpose of taxation even when it comes as a part and parcel of a composite mobile handset pack.
The Association has urged the Punjab Government “to follow the best international practices and help them in creating the momentum towards establishment of a robust ESDM (Electronics System Design and Manufacturing) eco-system in India”.
The Association’s national president Pankaj Mohindroo, in a letter addressed to Chief Minister Parkash Singh Badal, has drawn attention to the “unwarranted and detrimental attempt” by State’s tax department to treat mobile charger as an independent accessory for the purpose of taxation simply to extract higher taxes from the Industry.
ICA has held its view that such arbitrary actions on part of the State taxation department could dampen the efforts to create a robust ESDM eco-system in the country.
He said: “Governments world over do not tax essential accessories differently if they come as one composite pack. It can’t be that if one buys a car, one will be subjected to different taxes for the body, engine and the tyre.”