Infotainment sector to benefit from concessional customs duty

The Union Budget 2010-11 seeks to address the needs of multi-service operators to invest in 'Digital Head End' equipment to adopt digital technology and keep pace with on-going transformation in infotainment sector. Shri Pranab Mukherjee, the Union Finance Minister announced project import status at a concessional customs duty of 5% with full exemption from special additional duty to the initial setting up of such projects.

The Union Budget 2010-11 also proposes to do away with differential customs duty structure for importing digital masters of films for duplication or distribution in electronic medium and in cinematographic film. This differential duty structure hitherto being charged on the value of carrier medium will no more be applicable. The same dispensation would apply to music and gaming software imported for duplication. In all such cases, the value representing the transfer of intellectual property rights would be subjected to service tax, said the Finance Minister.

Source : Equity Bulls

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