PC makers rule out price cut despite tax exemption

Leading PC manufacturers like HP, Wipro and HCL Infosystems have ruled out any revision in computer prices following goverment's decision to exempt pre-loaded software on PCs from 10 per cent excise duty saying the announcement was just a clarification.

"There is no possibility of any drop in price. In fact this is just a clarification which came from the finance minister's budget speech", Sai Chandrasekhar, head, commercial desktop segment, Hewlett Packard India said. The issue was that of interpretation of an existing rule, he said.

Echoing the same views, an HCL Infosystem spokesperson said "we had made a representation to CBDT to take off the notification as it was an anomaly and with the exemption announced by the finance minister, the correction has been done."

When contacted, Wipro spokesperson said the exemption did not apply to Wipro as the company had not been paying the excise duty.

Therefore, there would be no impact of the exemption on us and in any case, the announcment is a clarification, the spokesperson said.

IBM officials could not be contacted despite repeated efforts.

Soon after the announcement by the FM, the industry association MAIT had said that the move could result in a cut of just about Rs 500.

The cost of pre-loaded software in a PC constitutes about 10 per cent of the total cost.