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Confed-ITA propagates uniform trade practices

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DQW Bureau
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With the objective to bring in uniform trade practices in IT market across

the state of Tamil Nadu, Confed-ITA is now going to roll out Common Minimum

Trade Terms (CMTT) among the vendors and has set a time line till August 31 for

implementation of the terms in the practical business.

Keeping in mind the increasing number of issues pertaining to channel

community and non-uniformity across the business level in IT, Confed-ITA has

been working on CMTT for several months. According to the guidelines of CMTT,

vendors will have to follow a uniform trade practice that includes uniform

pricing, no direct dealing, MRP sticker transparency, one dealer selling in

different territories, VAT differences and other issues that create clashes

among the channel community.

The vendors who will confirm to abide by CMTT will be termed as 'preferred

partners' in Tamil Nadu and those who do not will not be supported by Confed-ITA

but will not be banned. Any dealer who will work with non-preferred vendor will

have to do the business at their own risk and the association will not take the

responsibility for any issues that might occur at a later stage.

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“We are defining the relation between vendors, dealers and the end customers.

All the vendors functioning in Tamil Nadu will have to implement CMTT in their

trade practice by August 31 this year. However, those who do not confirm will

not be tagged a banned vendors but will eventually lose their credibility among

the channel partners and if anything goes wrong or any issue occurs, Confed-ITA

will not be accountable to solve them and will not support the dealer who deals

with such vendors,” informed PN Prasad, President, Confed ITA.

Besides, in order to create uniformity in pricing of the products and to

increase the involvement of vendors, Confed-ITA has suggested vendors to

increase the price of the products by 0.01 percent. And, the value of the

increased price will be transferred to the welfare fund of the association.

“This will be a very small amount that vendors will have to contribute for

the welfare of the association and they need not do it from their budget. We

have suggested them to increase the price of the products by 0.01 percent and

then transfer that amount to the welfare fund of Confed-ITA,” informed Prasad.

When enquired whether the vendors are aware of such upcoming agenda, Prasad

replied, “We have been sending regular mails to all the vendors who are

operating in Tamil Nadu but none of them have replied. Now we will apply some

uniform policies in the interest of the channel partners,” he said.

The main aim of Confed-ITA is to bring IT trading practice on a uniform

track.

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