Sales tax raids in Jalandhar

Jalandhar

May 12, 2008

Recently, the sales tax department conducted raids at the office of Impel
Infosys, Digital Work, Computer Solutions and Super Dot Computers. Commenting on
the raids, Amarjeet Singh Kumar, VP, JCDA said, “The reason sales tax
officials are giving us for holding raids is that their department is getting
comparatively lesser revenue from the region so they are keeping a check on
this. However, all the JCDA members whose offices had been raids have clear
records of tax payments and the officials did not find any fault.”

Kumar further said that the reason for collection of lesser revenue from the
region could be due to the direct presence of national distributors in the
region due to which the partners pay their VAT to them. “Earlier, when dealers
used to purchase the stock from New Delhi, they had to pay higher tax due to
difference in state. Now that distributors like Redington or Ingram are present
in Punjab, partners do not need to buy from Delhi and this could be the reason
that sales tax officials are feeling the pinch of less revenue collection,”
added Kumar.

Suresh Juneja, CEO of Super Dot Computers, one of the dealers whose office
were raided commented that it was just a routine check by sales tax officials,
who often carry out raids once in two or three years.

“Sales tax officials conduct such checks once in three years and it is a
normal routine. Dealers need not panic if they have clear account statements,”
commented Juneja.

Members of JCDA informed that they have asked the sales tax officials to
conduct a meeting and sort out the matter if they have any issues with computer
dealers in Jalandhar.

“We don't know the actual reason behind the raid. Sales tax officials are
saying that it is a routine activity but this causes inconvenience to dealers.
JCDA will soon hold a meeting with them and we are hoping to find a solution for
this,” informed Ravinder Bhumbla, President, JCDA.