Confusion abounds

The IT channel business is a case study in how you can do business even when
many times there is utter and total chaos around you. In the last fortnight, the
only thing constant in the channel space has been confusion. So I am hoping
business must be good.

What is most amazing is that the same issues keep cropping up again and
again. Take for example the past few days software dealers and partners who sell
cartridges and toners are up in arms trying to figure out what is the actual
rate at which they need to pay various taxes.

The software industry has been grappling with double taxation, it has reached
such a pace that everyone has their own theory to why the confusion exists.

SHIVANGI YADAV

The same is with channel partners in some states who are battling to figure
out whether toners or cartridges attract a VAT of four percent or 12.5 percent.
The channel partners and vendors insist on four percent, the tax commissioner
says 12.5 percent. Adding twist in the tale is that once a clarification was
issued by the Tamil Nadu tax officer that actually toners and cartridges should
attract only four percent VAT but since the Commissioner said 12.5 percent and
you cannot question him, the officers are implementing the orders. And what are
the channel partners and vendors doing, going round and round in circles.

You would by now think that these two are the most important things for
channel and that they would look at resolving them as soon as possible. But
guess what? Nothing has happened. So what have people been busy doing? As is the
case with all things Indian, if you cannot find anyone to blame, then-blame the
government of course. And blame game is what is frankly going on, and nothing
concrete has happened till now and most likely will not happen also.

It has happened in the past and it will happen again. Someone will go to
court and get an interim injunction and then everyone will immediately go back
to business and forget that the injunction was well interim. It will lapse at
some date in the near future and you would be back to square one.

One day the rhetoric will be at its peak, everyone you meet will make you
feel like they will not rest till the issue is resolved and then the next day
forget about it. But such is the nature of the business that no one thinks long
term. Or if they think then they become so self righteous that people refuse to
take them seriously.

Some of the associations in channel space started very honestly and they were
able to achieve success because their intentions were on the right track. But
like with all things good, that phase ended as some became too militant and some
just fizzled out. So now there is no one to fight actually for the channel
cause. MAIT as an industry body hardly is doing anything for the benefit of the
IT channel. So till a time the channel gets its heart and mind both on track,
the situation will prevail. Whether this situation is happy or unhappy-is
something that no one can actually decide on. And till such a time that we as a
community get our act together, confusion will continue to persist because if
you cannot help yourself no one else is going to help you.

(shivangiy@cybermedia.co.in)