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Long drawn CMDA-HP row ends

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CIOL Bureau
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PUNE: Nearly four months after the rowbetween Computer and Media Dealers Association (CMDA) and Hewlett Packard India, Pune has finally lifted the ban on HP products following long series of negotiations with the company. John Thomas, the new president of CMDA revealed that Pune would now be part of HP’s national program called Geographic Initiative Program, which was launched on January 1, 2003.



Under this program, in up-country markets HP preferred partners would be expected to pay octroi. They would then be given an additional two percent 'back-end' incentive along with regular incentives given when targets are achieved. In Pune, this additional incentive would take care of two percent of the three percent octroi levied.

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However, these 'backend' incentives would be given only when the HP preferred partner presents a proper invoice inclusive of local taxes (like octroi). This scheme is applicable to all HP authorized second tier resellers i.e. Premier Business Partner, Business Partners, Retailers etc. achieving HP's quarterly targets.

The two percent incentive would be paid only on wholesaler's Invoices (Octroi paid ) having Pune city address as billing location. The invoices with all the local levies only would be considered by HP for the incentive. The octroi is presently three percent. Of this, two per cent would be paid by the vendor. And the preferred partners have agreed to pay the remaining one percent. "Since the entire Pune channel purchases from them as they offer discounts, not usually provided by the distributor, it would not be difficult for the channel to meet targets," John said.

Johan said that the association has already notified its members about development. "HP would now participate in a big way in the forthcoming ‘IT Expo’ 2003 organized by CMDA in Pune from January 16 to January 20," he added. When contacted, JT Jacob of the IPG division, HP maintained that the company had not taken any special steps to resolve the issue.



"We had initiated the Geographic Initiative Program across the country offering additional incentives to dealers and the Pune channel felt that this more or less met their demands," he said. He expressed satisfaction that the issue had been resolved amicably.

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