Personal computing gadgets and accessories, including desktops, laptops, tablets, printers, UPS and mobile phones, will cost more thanks to a hike in excise duty from 10% to 12%. S Rajendran, chief marketing officer of Acer India, said: “The prices of all our PCs will rise by 2%. A Rs 25,000 PC will now cost an extra Rs 500.” Even imported products, which will now attract an additional 2% countervailing duty, will become more expensive.
Vinay Deshpande, CEO of Encore Software, maker of products like the Simputer, said the removal of Customs duty on LCD panels would have a marginally positive impact, but that would be largely negated by the higher excise duty and service tax.
For the much-vaunted IT services industry, the absence of any new tax-saving measures means the smaller companies among them will likely suffer a setback