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SW dealers hold 'no transaction day'

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CIOL Bureau
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NEW DELHI: 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.

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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.

ISODA members also informed that among the two distributors, only Ingram Micro got in touch with members to resolve the issue, while there was no response from Redington.

“Autodesk is the only vendor that has implemented reduced CENVAT on its products with immediate effect. 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. The reduction was implemented on Microsoft licenses four to five days after the government’s declaration. Salwan further said that the business loss for the day was faced by the distributors and not by the software dealers.

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Commenting on the action taken by ISODA, Alok Gupta of New Delhi-based Softmart Solutions, explained that members of ISODA wanted to show their unhappiness with the attitude of distributors and to protest against them. "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'.

Response from Redington and Ingram Micro on the issue is still awaited.

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