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Excise exemption on PoS device manufacturing till March'17

Press Trust of India  |  New Delhi 

The duty exemption for making PoS devices, which are used for electronic payments at malls and shops, will remain valid till March 31, 2017, said today.

In order to promote a 'less cash' economy, the had yesterday removed 12.5 per cent excise duty and 4 per cent SAD (Special Additional Duty) on PoS machines and goods required for their manufacturing.

"To further reduce the cost of such devices and thereby encourage payments, the has exempted such devices from Central Excise Duty. Consequently, these devices will also be exempt from additional duty of customs (commonly known as CVD) and special additional duty of customs (commonly known as SAD)," a ministry statement said.

These exemptions will be valid till March 31, 2017.

Since the announcement of of 500 and 1,000 rupee notes on November 8, the government has laid increased emphasis on promoting payments.

Point of Sale (PoS) devices are used for cashless transactions for making payments. They can also be used for disbursing

Currently, PoS devices do not attract any basic customs duty. To encourage domestic firms to manufacture such devices, all requisite raw materials have also been exempted from excise duty, and consequently from CVD and SAD.

The exemption from these levies would make domestic PoS devices cheaper by about 16.5 per cent. Almost 90 per cent of them are currently imported.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 29 2016. 15:22 IST