Software dealers hold 'no transaction day

Protesting against distributors like Redington and Ingram Micro for not
implementing the four percent reduced CENVAT on software products like Trend
Micro, Symantec and Tally, Indian Software Dealers Association (ISODA) observed
a 'no transaction day' on Dec 22.

85 members of the association participated in the protest, and no payments,
bills or orders were placed. Dealers informed that all the bills and order
received from the distributors yesterday were returned.

“Our objective is to make distributors realize that they cannot play a
monopolistic role in the market and that channel can move against them in a
united manner,” said Harinder Singh Salwan, Secretary, ISODA. Salwan further
said that the business loss for the day was faced by the distributors and not by
the software dealers.

Commenting on the action taken by ISODA, Alok Gupta of New Delhi-based
Softmart Solutions, explained, “Distri­butors immediately increase prices when
there is a hike. But when the government declares a reduction by four percent,
nobody is willing to make a move, though it has been more that two weeks since
the announcement,” he said.

At the time of publishing this report, ISODA was still calculating the value
of business loss due to the token 'no transaction day'. ISODA members also
informed that among the two distributors, only Ingram Micro got in touch with
members to resolve the issue. Response from Redington and Ingram Micro on the
issue is still awaited.