Tablets with phone feature to cost more as CBEC raised the import duties

Tablets that have calling function would be treated as a computing device and not a phone since the main function of the product is more similar to a computer, clarified the apex indirect taxes body, Central Board of Excise and Customs (CBEC).

Finance Minister also said, "A tablet is a tablet and not a phone even if it allows for phone calls and shall face higher rate of import duty levied on computing devices."

An import duty (countervailing duty) at the rate of 12 % on Laptops and Computers where as mobile phones attract a concessional import duty at the rate of 6%. The difference in duty offers huge merchandise opportunities for companies to dub their tablets having calling facility as phones.

There is rising acceptance of these devices that cost less than top end smart phones suit people who are largely data users but occasionally need phone functions.

These tablets with phone facility are being widely accepted by the people who need both phone and tablet functionality. As the most of the sections of people are buying thesse 'Phablets' the companies like Samsung, Micromax are releasing more and more Phablets, that are 5-Inch size, into the market.

CBEC decided to fill this loophole and took this decision to bring these Phablets into the category of computing devices.