NCHMCT JEE 2016 Question Paper with solutions for online practice
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Passage - 3
Today the import duty on a complete machine is 35% for all practical purposes, whereas the import duty on the raw materials and components range from 40%-85%. The story does not end here. After paying such high duties on components, once a machine is made, it is subject to excise duty from 5% to 10%. At the time of sale, the machine tools are subject to further taxation, further taxation, i.e., Central sales tax or State sales taxes which range from 4% to 16%. This much for the tax angle. Another factor which pushes the cost of manufacture of machine tools is the very high rate of interest payable to banks ranging upto 16%, as against 4%- 7% prevailing in advanced countries.
The machine tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of successes stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that lndia is at least 6000 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India’s machine tool industry to enable them to produce quality components at reduced costs.
Is it anybody’s case that the needs of this fragile sector will be met from 6000 km away? Then, what is it that the industry requests from the Government? It wants level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interests of the nation.
Today the import duty on a complete machine is 35% for all practical purposes, whereas the import duty on the raw materials and components range from 40%-85%. The story does not end here. After paying such high duties on components, once a machine is made, it is subject to excise duty from 5% to 10%. At the time of sale, the machine tools are subject to further taxation, further taxation, i.e., Central sales tax or State sales taxes which range from 4% to 16%. This much for the tax angle. Another factor which pushes the cost of manufacture of machine tools is the very high rate of interest payable to banks ranging upto 16%, as against 4%- 7% prevailing in advanced countries.
The machine tool industry in India has an enviable record of very quick technology absorption, assimilation and development. There are a number of successes stories about how machine tool builders were of help at the most critical times. It will be a pity, in fact a tragedy, if we allow this industry to die and disappear from the scene.
It is to be noted that lndia is at least 6000 km away from any dependable source of supply of machine tools. The Government of India has always given a great deal of importance to the development of small scale and medium scale industries. This industry has also performed pretty well. Today, they are in need of help from India’s machine tool industry to enable them to produce quality components at reduced costs.
Is it anybody’s case that the needs of this fragile sector will be met from 6000 km away? Then, what is it that the industry requests from the Government? It wants level playing field. In fact, all of us must have a deep introspection and recognize the fact that the machine tool industry has a very special place in the country from the point of strategic and vital interests of the nation.
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