What the Budget does
- Exemption from customs duty on specified parts of set top boxes and specified raw materials for use in the IT/ electronic hardware industry.
- Reduction in customs duty on convergence products from 10% to 5%.
- No change in the corporate income tax rates.
- No change in the rate of surcharge and dividend distribution tax.
Also read: How Budget affects your stocks
Impact on sector
- The exemption of customs duty will bring broadcasting equipment like set top boxes on par with rates applicable on telecom equipment and provide a fillip to the DTH industry that uses set top boxes.
- It will also encourage domestic production of set top boxes.
Impact on companies
- The move will give a boost to the cable TV, direct-to-home (DTH) and IPTV operators.
- The substantial revenue leakage currently present due to underreporting by the LCOs, will get corrected to some extent with the proliferation of set top boxes. Broadcasters like Zee, NDTV and TV18 would benefit from this move.
Media
ZEE, NDTV, PVR, JAGP
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