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ADCTA Shows Its Concerns for the Dealer Community

ADCTA has circulated a notice for Principal Companies / Distributors of Multi Function Printers (MFP). The Association is drawing their attention towards the sale of Multi Function Printers (MFP) wherein output VAT @ 5% is charged and accordingly retailers / dealers are charging output VAT @ 5% from their customers. Recently officers from Department of Trade & Taxes conducted audit of Books & accounts of few traders in Nehru Place Market and considered MFP shall attract VAT @ 12.5% thus raised demand on account of VAT @ 12.5% on sale of MFP. ADCTA is requesting the Principal Company / Distributor or Supplier to realize their duty to protect their dealers from this extra burden because all dealers are selling and claiming input VAT @ 5% according to their sale invoice pertaining to MFP.

The notice by ADCTA states that being a Principal Company / Distributor or supplier all sale invoice issued by your company are required to charge Output VAT @ 12.5% of MFP so that dealers can claim input VAT @ 12.5% accordingly. In case sale invoice of MFP from your company issued with output VAT @ 5% then it must have undertaking to compensate your dealers from legal issues / Demand, if occurred on account of VAT @ 12.5% on sale of MFP. If these facts are concealed in order to boost sale of your company, it will amount to mislead your dealers with ulterior motive.

 

26-Mar-2012 07:19:15
CURRENT ISSUE Print Media
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