Tuesday, December 23, 2008

Software Dealers Demand CENVAT Benefits - Dec 23, 2008

However, after the declaration of CENVAT on IT products by Central government, which would be reduced by 4%, the dealers anticipated that the decision would help improve the market performance that has been slow due to economic recession. A week after the government''s decision, the distributors like Ingram Micro and Redington are still taking advantage of imported software and the modified excise duty is not being applied on them.

The Indian Software Dealers Association (ISODA) members informed that distributors have not yet reduced the prices on products from Tally, Adobe and Symantec. On the other hand, after the government''s declaration the reduction was implemented on Microsoft licenses four to five days.

The members protesting the monopolistic attitude of distributors and in order to make them realize the strength of ISODA, have decided to call for a ''no transaction day'' on Dec 22, informed Harinder Singh Salwan, Secretary, ISODA.

Hemant Chabria, Secretary, ISODA informed that dealers were protesting about the fact that even after the government''s announcement the distributors are taking advantage by selling the products at higher rates.

Salwan informed that on Dec 22, all the 100 members of ISODA will protest and no billing, payment, supply or transaction will take place on that day. "We want to let our distributors realize that ISODA is a strong association and they cannot run business according to their own will," he said.

An ISODA member shared that the association had directly interacted with top officials of Redington and Ingram Micro over the issue of reducing the excise duty by four percent and the distis had agreed with them.

On the other hand, when the software dealers conveyed the message to an executive of one of the distributors, he refused to acknowledge the reduced rates, saying that ISODA is not a recognized body and cannot play any role in modifying the distributor''s decision.

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