CMDA Wins Battle Over VAT

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CMDA-Delhi has won the legal battle against Delhi Government to reduce the VAT percentage to 4 percent on select IT products.

CMDA-Delhi has won the legal battle against Delhi Government to reduce the VAT percentage to 4 percent on select IT products. The association was fighting this case since last two years.

Now for Delhi dealers, the tax under Section 4 (i) (b) of the Delhi Value Added Tax (DVAT) Act for products like ink toners and cartridges will be levied at 4 percent as against 12 percent.

Speaking to itVARnews, Manoj Khanna, Secretary, CMDA-Delhi said, "We won the case against Delhi government to bring the VAT on ink and toner cartridges to 4 percent which they were trying to raise it to 12 percent. The government was fighting to bring it in general items category where as we were claiming it to be parts and accessories of computers."

The states of West Bengal, Maharashtra, Delhi, Karnataka, Andhra Pradesh, Haryana, Punjab, Chandigarh, Goa, Jharkhand, and Kerala fall into the category to levy VAT at 12.5 percent for select IT products. After seeing CMDA's success variou

s other associations are also insisting to reduce the VAT rate to 4 percent.

"The Channel is overjoyed with the result and we are going to celebrate this victory in a special event which our Association is planning to organize in near future," he added.



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