Channel suffers in UP bandh

Channel partners in Uttar Pradesh (UP), along with other business groups,
went on a two day strike directed by UP Udyog Vyapar Mandal demanding the
government to make VAT a simplified process and to reduce the necessity of
filling a number of other forms like form C, form 31, form 32, etc that dealers
have to file.

The channel community opined that though they were in complete favor of VAT
in UP, besides its implementations there were scores of other forms that
proprietors are asked to fill, which ideally should be done away with. The bandh
took place on Nov 27 and 28. Udyog Vyapar Mandal is a non-political body at
state level in Lucknow that represents members of all industries in the state.

Harsh Batra, Proprietor of Ghaziabad-based Classic Communications, who is
also a member of Udyog Vyapar Mandal highlighted that IT channel partners fully
support VAT but the only demand was to reduce the number of other forms they had
to file, which made the entire task a

complicated procedure.

Shiv Shankar Singh, Proprietor of Allahabad-based Stek Systems, and President
of Allahabad Computer Dealers Welfare Association (ACDWA) said that the entire
channel community in Allahabad was in favor of VAT as it would curb the practice
of black market. But he pointed out that the VAT policy in UP was slightly
different from other states and there were certain points that needed to be
reframed, hence the Mandal had called for a two day strike.

Batra from Ghaziabad added that the bandh was carried out successfully in the
state. Udyog Vyapar Mandal also demanded that the government extend the date of
VAT implementa-tion from Dec 1 to Jan 1 in order to make the VAT policy less
complicated.

Business affected

However, all the dealers were not very impressed with the idea of holding a
bandh. Himanshu Kohli, Proprietor of Kanpur-based Comexcell Technologies
preferred to remain unaffected by the move and kept his office open on the
second day of strike. He put forward his thought that though he fully supported
VAT there was no sense in calling a bandh. He also said that it was just a
political move and most of the businessmen who had joined the bandh were even
not aware of the pros and cons of VAT.

Deepak Kumar, Proprietor of Varanasi-based Life Computers said, “Due to the
strike, dealers in Varanasi have suffered a loss of around Rs 50 lakh.”

Dealers in almost all region opined that their business had suffered due to
the bandh and the loss amounted to around Rs 1 to 3 crore.

Rakesh Garg of MKG Computers, Agra said that due to the bandh there was a
complete loss of business for two days as 75 percent of the market was closed.