Octroi or no Octroi?

DQW Bureau
New Update


IT associations across Maharashtra are

all to set to form a federation of associations to highlight their

issues regarding href="">Octroi

and other major services. Octroi is a local

tax collected on various articles brought into a district for

consumption. For quite a long time now, the IT dealers association in

Pune, Computer and Media Association (CMDA) has been protesting

against the proposed move by Pune Municipal Corporation (PMC) to

privatize Octroi collection in the city. Last week, associations from

all over Maharashtra held a meet to discuss about the issue and take

necessary steps to work towards the solution.

Sharing more on this, href="">Yogesh


Secretary, CMDA Pune said, “At the recently held meet, all the

members of the association have decided to form a federation of

association only for the western region, which will include

Maharashtra, Goa, Madhya Pradesh and Gujarat. The main agenda would

be to speak on vendor policy and address the government issues for

all the four states. As far as the CMDA is concerned, we have passed

a resolution that all our members will only bill Octroi-paid products

from distributors and vendors. We have also initiated a communication

process with the vendors as well as the distributors and we are happy

that they all are ready to co-operate to support the cause. CMDA Pune

has been making constant efforts to make companies like HP, Lenovo,

Sony, Canon, Samsung, etc to deliver Octroi-paid material in Pune,

which has in turn increased the Octroi collection of the PMC. All

members have pledged to do business in Octroi-paid material only.

Also, many distributors agreed that they will bill Octroi-paid

materials only.”

Also, it has been decided that

beginning from August 15, the partners would boycott all vendors and

distributors who refuse to comply on their demand for uniform pricing

policy. Support for the issue has been pouring from other

associations as well. Goa IT association and FITAG (Federation of IT

Associations of Gujarat) will also be voicing their displeasure over

this issue.


Elucidating more on the matter,

Prashant Kuncolienkar, President, GIBA (Goa IT Business Association)

said, “I think collectively we can handle many issues and it will

definitely make an impact. We will have a better negotiating power

and will be successful in dealing with the pricing policy. Because of

Octroi, many people find out illegal ways to obtain materials. With

this policy, it will be convenient for people to buy materials from

both within and outside Octroi. In fact the government collection of

revenue will also be affected in a positive way.”

Supporting the issue, href="">

Ketan Patel,

President, TAIT (Trade Association of IT) said, “To help the

business from getting affected, almost 75 percent of the vendors have

systems in place, but most component vendors do not adopt this

policy. Also, all vendors selling Octroi-paid products within city

will ensure faster and better logistics for product delivery to


Also talking about the BEE (Beureau of

Energy Efficiency) meet, which was held on the same day, Champak Raj

Gujrar, MD, Maxtone said, “As we all are aware that the government

has passed a rule regarding the ratings being mandatory for all the

electronic items, now they have also made it compulsory for the IT

sector as well. Thus we have expressed our concern for the 5 lakh SIs

in the country and we have forwarded some norms to the government,

which will be beneficial for the channels. We are happy that the

government did think of consulting before imposing a law on us.”