CMDA calls for abolition of octroiÂ

Even as the Computer and Media Dealers Association (CMDA), Pune has welcomed
VAT, members of the association have called for abolition of octroi and raised
protests against some stringent provisions of VAT.

While the CMDA stayed away from the bandh, the Vidharbha Computer and Media
Dealers' Welfare Association (VCMDWA) has lent support 'from outside' to
the Nag Vidharbha Chamber of Commerce that has called for a bandh in Nagpur in
protest against the implementation of VAT. "We are all for VAT. There is
nothing wrong with it. What we want is the removal of the 3% octroi and a review
of some provisions of VAT, which, we believe are not welcome," said CMDA,
Pune President, Suresh Joshi. He has now completed his tenure as president and
Anil Pherwani will now take over as president.

CMDA Secretary, Brijen Shah said that VAT would help the channel community
avoid double taxation for smaller SIs. CMDA organized a seminar recently for its
members to set the ball rolling. Shah said that while most members were ready
for VAT with billing and accounting software, many were not clear on the
rulebook. " The state government is yet to come out with a rule book.
Therefore, there are no clear indications on how the VAT will be
implemented," he added.

Members of the CMDA met the state finance minister Jayant Patil, submitting a
memorandum that demanded the abolition of octroi. Suresh said that while the
minister assured them that the enforcement of VAT would not be very strict, it
would take at least six months to a year to review some of the provisions.

He said that traders could hope for amendments suitable for trade. According
to him, members are objecting to the absence of a provision for an appeal
against an ex-parte order and the provision for a check post at state borders.

Meanwhile VCMDWA President, Sudhir Budhey said that some of the traders had
downed shutters in the city in support of the bandh while some of them were
operating at their own risk. "VAT, if implemented properly, will be
beneficial to members," he said. However, since association is a member of
the Nag Vidharbha Chamber of Commerce, it has lent support to the association.

NANDA KASABE