In yet another push for digital payments and to move towards a cashless economy, the government has abolished all the applicable duties on the manufacture and import of Point of Sale (PoS) devices and the components used to manufacture them.
In yet another push for digital payments and to move towards a cashless economy, the government has abolished all the applicable duties on the manufacture and import of Point of Sale (PoS) devices and the components used to manufacture them.
According to the Indirect Taxes Annexure of the Budget 2017 document,
The Basic Customs Duty (BCD), Countervailing Duty (CVD) and Special Additional Duty (SAD) that was applicable on the import of miniaturized POS card readers and micro ATMs, finger print readers and scanners, and on iris scanners, have now been reduced to zero.
The same duties applied on the parts and components needed to manufacture the aforementioned devices have also been done away with which will encourage domestic manufacturing. This means that importing the devices that facilitate cashless payments and importing the components required to make them, will now become cheaper.
BCD is an additional custom duty is charged in lieu of the excise duty duty applicable on similar goods manufactured and produced in India.
Countervailing Duty (CVD) is an additional import duty charged on imported goods and the Special Additional Duty (SAD) is levied on all imports.
In the Budget, Jaitley announced a mission with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards.
He also said that the banks had set a target of introducing an additional 10 lakh new PoS terminals by March 2017, and 20 lakh Aadhar-based PoS by September 2017.
The waiver of duties on components and devices used in cashless transactions is in line with the government's focus to move the country towards a cashless economy. To this end, the government also put restrictions on cash transactions above Rs 3 lakh.
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