VAT problems plague North India : CMDA looks to MAIT

Computer Media Dealers Association (CMDA) Delhi has sent a reminder letter to
MAIT asking for more support from the association to improve their way of doing
trade. It may be noted that CMDA already sent letters to MAIT asking it to urge
the vendors to drop the practice of doing sales by giving backend incentives and
do upfront business. Puneet Singhal, President, CMDA in his letter to MAIT has
again highlighted the problems faced by the channels due to the backend
incentives given by the vendors and has urged the industrial body to intervene
and ask its members (vendors) to stop the practice of issuing backend
incentives. The letters have also been sent to vendors like HP, Samsung, Epson
and Canon. “This is our fourth letter to MAIT and the vendors, and nobody has
even bothered to give a reply. Due to the backend incentives, the channels are
facing so many liabilities like paying VAT and service tax for that and end

up in serious problems. On the other hand, due to the practice of setting
targets, many partners are forced to discount and the default cases are rising
everyday,” claimed Manoj Khanna, Secretary, CMDA.

He also claimed that there is no transparency and deadlines set for the
channels in issuing backends and the vendors are bullying the channel.

Vinnie Mehta, Executive Director, MAIT said that the letters sent by CMDA has
been circulated among its members. “It is the responsibility of our members to
address these claims and we don't have any say on their business.”