IT Taskforce
Basic Background  Report


Modification


On the basis of the feed-back on the Basic Background Report (BR-1) of the National Task Force on Information Technology & Software Development, received from the Manufacturers' Association for Information Technology (MAIT), individual hardware manufacturers and other organisations as well as individuals and NRIs, the Section 1.2 entitled, 'Duty Reduction Schedule: Commitment to WTO' is modified as follows:

1.2 Duty Reduction Schedule: Commitment to WTO

2(i) Issuance of a Notification rescinding the position earlier conveyed by the Government of India to WTO and completely acceding to the WTO-ITA Ministerial Declaration of 13 December 1996 at Singapore, with the following new schedule:

In Attachment A, Section I and II of WTO-ITA:

(a) Out of the 217 items listed in ITA-I, 94 items which were proposed earlier for zero duty by 1 January 2000 are now advanced to 1 January 1999.

(b) The remaining items earlier proposed for zero duty by the year 1 January 2003/2004/2005 are now advanced to 1 January 2002.

(c)

  • Duty on Capital Goods for the manufacture of items in (b), wherever applicable, becomes zero by 1 January 2000.
  • Inputs/raw materials for the manufacture of the items in (b), wherever applicable, becomes zero by 1 January 2001
  • Dual purpose items will be taken care, wherever applicable, by allowing duty drawback benefits or treating the supplies to the IT industry as deemed export.
  • Zero excise duty is concomitant with zero Customs duty with in-phase reduction

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