Hyderabad: Mobile phone organisations who have 200 distributors and 5,000 dealers, Telangana Mobile Phone Distributors Association and Telangana Cellular Mobile Retailer Association are going to hold a silent protest at Dharna Chowk in Hyderabad on Wednesday morning. Both these organisations have 200 distributors and 5,000 dealers.
About a hundred members of these two organisations will hold a protest against Re-Assessment Notices served by the Commercial Tax Department. Disclosing the details, Chaitanaya Dev Singh, president of Telangana Mobile Distributors Association and Majid Bin Abid, of Telangana Cellular Mobile Retailers Association said, during the period of 20th September 2014 to 28th July 2016 mobile phone manufacturers charged VAT of 5% to distributors.
The same was charged to retailers and customers. Accordingly, the Commercial Tax Department completed the assessments without raising any objections. But suddenly the Department started issuing Re-assessment Notices for the same period at 14.5% and proposed to demand the differential tax liability of 9.5% which runs into several crores.
To meet the demand notices of the Commercial Tax Department, the margin and entire capital of these players will get eroded and they will have to shut their shops, they said.
Many representations have been made to competent authorities and got assurances but the problem is not solved. In this context, the two associations are planning for a Silent Protest at Dharna Chowk, near Indira Park on 4th September at 12noon. The two associations appeal and demand to the Government to intervene and save the distributors and dealers.