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Hyderabad dealers not to pay ToT

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CIOL Bureau
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HYDERBAD: In a bold move, the Hyderabad dealers association has decided not to pay the Turn over Tax (ToT) of one percent levied by the government of Andhra Pradesh on the channels community.

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"We used to give this tax but the government itself removed it in 2000. Now they are telling us that the tax would be levied on computer peripherals, as it does not comes in the computer category. We have spoken to the government officials regarding this and they have assured us that the issue will be solved soon," said, Ravindra Menon, President at Twin-Cities Computer Dealers Association (TCCDA).

It may be recalled that the government of AP on January 1, 2000 removed ToT, but again about a month back Hyderabad dealers association members started receiving notices from the income tax commissioner office asking them for the payment of ToT.

The notices asked all the dealers to submit the ToT from January 2000 till date, which would come out to be a big amount and this is triggering the anger among the channels community.

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"According to the government order (GO) 911 dated December 31, 1999, there should be no ToT on computers and computer related activities, but the income tax authorities are now arguing that computer peripherals doesn’t come under that GO. So they are asking for the tax," he explained.

The issue becomes big when the amount of money to be given as ToT comes in the range of about Rs 50 lakh. "This is a huge amount and we would not be able to pay that. We have explained everything in front of the government people and now we can only wait for the best," he added.

Though TCCDA, the computer dealers association has conveyed their message to the government officials, they have not taken any action so far. But it is for sure that dealers would not give in so easily as the market situation would not allow them to part with their hard earned money so easily.

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