![](images/sepfull.gif) |
Sector Trends
10-Jul-14
|
![](images/sepfull.gif) |
|
|
|
Sector
|
|
Consumer Durables (Budget 2014-15): Demands of the industry have been met to some extent
|
|
|
|
Budget Provisions
- To encourage production of LCD and LED TVs below 19 inches in India, the basic customs duty on LCD and LED TV panels of below 19 inches has been reduced from 10% to Nil.
- Further, to encourage manufacture of LCD and LED TV panels, it has been exempted from basic customs duty specified inputs used in their manufacture.
- Customs duty on color pictures tube for Cathode Ray Television has been waived off
- Extension of the excise duty concessions beyond 30th June 2014 for a period of 6 months up to 31st December 2014 proposed in the interim budget to continue.
- Increase in exception limit for direct tax by Rs 50,000 to Rs 2, 50,000 for individuals and to Rs 3,00,000 for senior citizens. Exception under section 80C raised by Rs 50,000 to Rs 1, 50,000 for individuals.
Budget impact
Increase in the exception limit for direct tax for individuals is a positive move for the consumer durable sector as it will increase the disposable income of the individuals encouraging more buying of consumer durable products. Television makers have something cheer as the customs duty on color pictures tube for Cathode Ray Television has been waived off and import duty on LCD and LED TV panels of below 19 inches has been reduced from 10% to Nil making the goods cheaper.
Industry body CEAMA had earlier in its pre-budget memorandum asked the Finance Ministry to remove custom duty on colour picture tube (for box TVs) and LCD/LED panel below 19-inch LCD TVs to cater to the last mile of the Indian population. Currently this segment is served by MNC players through direct imports and with higher duties on colour picture tubes and LCD panels below 19" domestic manufacturing industry had become uncompetitive. The demands of the industry to reduce duties on domestic manufacturing of set-top boxes (STB) have not been met. STB box makers in India have to pay VAT between 12.5% to 14% when it is given to cable companies as Cable and DTH operators do not provide them ‘C' Form, since they are leasing out boxes. Cable and DTH operator do not pay any VAT, when they import from China.
Stocks to watch
Videocon, MIRC ELectronics
Outlook
The consumer durable industry is expected to show positive results in the coming months backed by the extension of the excise duty concessions. Other provisions made in the budget related to the consumer durable sector give the industry some hope of growth in demand going forward.
|
|
Previous News |
Consumer Durables: Consumer sentiments slightly lower
(
Sector Trends
-
Sector
25-Sep-23
18:52
)
|
|
Electronics
(
Sector Trends
-
Sector
21-May-23
10:20
)
|
|
Consumer Durables: AC market in focus ahead of summer
(
Sector Trends
-
Economy
25-Apr-24
15:19
)
|
|
Electronics
(
Sector Trends
-
Sector
30-Jun-24
10:30
)
|
|
Consumer Durables: Demand Seen Supported
(
Sector Trends
-
Sector
28-Feb-18
18:16
)
|
|
Consumer Durables: Urban spending remains robust
(
Sector Trends
-
Sector
28-Jun-23
14:10
)
|
|
Flashlights & Torches: High grow potential
(
Sector Trend - Outlook
-
Sector
28-Dec-15
12:01
)
|
|
Consumer Durables: Consumer durable companies expect buoyant festive season
(
Sector Trend - Outlook
-
Sector
26-Sep-16
15:09
)
|
|
Flashlights & Torches: High growth potential
(
Sector Trends
-
Sector
28-Dec-15
11:57
)
|
|
Consumer Durables: Volume growth is likely to revive in FY16
(
Sector Trends
-
Sector
13-Mar-15
19:28
)
|
|
Fans: Demand grows, but margins shrink on higher input costs
(
Sector Trends
-
Commodity Futures
31-Aug-12
19:09
)
|
|
|
![](images/sepfull.gif) |
Other Stories |
![](images/sepfull.gif) |
|
|
|
|
|
|
|