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VAT problems plague North India : CMDA looks to MAIT

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DQW Bureau
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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.”

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