Tuesday, May 30, 2017

Government seeks to impose customs duty on Kindle



Government seeks to impose customs duty on Kindle 

NEW DELHI: The government is seeking to impose customs duty on Kindle and has moved the Delhi High Court challenging a 2015 decision by an adjudicatory body that ruled that the US ecommerce giant was not liable to pay customs duty on imports of the e-book readers.
In 2012, Amazon Seller Services approached the Authority for Advance Rulings (AAR), arguing that the Kindle was exempted from duty under a rule that covered devices with translation or dictionary functions for availing of the benefit. The revenue department opposed the application taking the plea that Kindle did not have “translation” or “dictionary functions as its main feature”
The department argued the exemption notification would be applicable only to such Kindle devices that had dictionary functions as its main function. The AAR ruled in its favour, prompting the revenue department to appeal earlier this month against the decision.
“Notice has been issued to Amazon,” said Sanjeev Narula, the government lawyer in this case.
Amazon didn’t respond until press time Monday to an email seeking comment. In 2015, the authority said that the interpretation of the revenue department in the case was incorrect.

It said all such electrical machines that have translation or its dictionary functions were entitled to the benefits. Amazon Seller Services is the flagship arm of the Seattle based ecommerce giant that operates Amazon.in marketplace in India.
Amazon is currently fighting home-grown Flipkart.com for supremacy in the country’s rapidly growing online market. The US Company has pledged to invest about $5 billion in India and counts the country as one of the biggest future markets for it. In 2015, Amazon launched Kindle Unlimited subscription service in India that allowed customers to read a wide genre of books for a monthly fee of Rs 199.

Regards 

Pralhad Jadhav 

Senior Manager @ Knowledge Repository  
Khaitan & Co

Upcoming Event | MANLIBNET 17th Annual International Conference on 15-16 September 2017 at Jaipuria, Noida, India  

  

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