JCDA goes against Finance Department orders

The ongoing tussle between Jammu IT dealers and Finance Department, has forced the local IT association-Jammu Computer Dealers Association (JCDA), to go against the department orders and asked its members to bill at 5%, all those items which have gone unspecified due to the budget and SRO issued by Finance Department. Most of the confusion of tax rates is upon printers and scanners.

Speaking to The DQ Week Naveen Gupta, joint secretary, JCDA commented, "We have taken this decision in response to members request and fast approaching quarterly returns time. We have told our members to continue billing unspecified items at 5% against 13.5% as ordered by the department. We have also seen, out of fear, some of the non members and distributors have started billing these items at 13.5%. As a result, landing price of most of the printers have gone beyond MRP, creating chaos and confusion amongst Jammu and Kashmir resellers.

The association wants to protect the business of its members. In case the department challenges the association's decision, then they will take a legal recourse against the department.

Gupta also added, "We have been waiting for a positive response from the department on our demands, but the slow pace of the Finance Department and Sales Tax Department in answering the clarification sought by JCDA is very frustrating. Our association sent several letters seeking clarification with regards to the rate of tax applicable on left over items. Instead of giving any response, the matter has now been sent for consultation to some agency which may further delay the process. Seeing the pace, it is assumed that a reply may come when 2nd quarter's return time is around."

The entire episode shows negative attitude of the Sale Tax department. This way of working is not acceptable and palatable by the association. It is also likely that the Sales Tax department may verify billing, etc, after the vendors have filed their return.

Seeing all these, JCDA is likely to hold a general body meet on July 21, and may ask its members to bill the left over items at 5%, thereby removing confusion among members.