ADCTA welcomes DVAT changes; Tally and Busy showcase faith

ADCTA says accounting software companies charging more on upgradation

The latest steps have been taken by the DVAT Department to make tax collection process more transparent in different VAT clause. To implement the same, VAT department has brought some changes in return filing mechanism. Channels partners are appreciating and welcoming these changes in tax collection process to make the country financially strong and to contribute in development of the country. But according to the All Delhi Computer Traders Association (ADCTA), some Accounting Software companies like Tally and BUSY are taking advantages of these opportunities by charging huge amount on updating their software.

ADCTA has written a letter to the Prime Minister and the Chief Minister of Delhi to look into the matter. In the letter, ADCTA says, “Dealers are ready to work with the new compliance set by DVAT department, but it is not acceptable that if these accounting software companies use this occasion for grabbing this opportunity to make more money and unjustified charges to harass dealers”.

In an exclusive interaction with The DQ Week, Swarn Singh, Secretary, ADCTA explained the entire scenario and said, “Delhi is divided into 106 wards to collect Sales Tax. We have over 3 Lakh registered dealers in all 106 wards in Delhi. As per the Sale Tax Department, last year Sales Tax collection was 24 Thousand Crore. Partners are welcoming these changes in tax collection process but this will not be acceptable that these accounting software companies bound partners for heavy updating amount”.

Mahinder Aggarwal, president, ADCTA said, “We have written two letters in CM office and Deputy CM office respectively in this concern. We have requested them to look into the matter. We have got the reply from them saying that our concern have been forwarded to the Sale Tax department of Delhi and Deputy CM office to look into the matter”.

According to ADCTA, BUSY is charging minimum Rs.2800 as software updation charges from last version and if you have a lower version, then charges are Rs.4900 for standard version update.

Asking on this same, Dinesh Kumar Gupta, Managing Director, BUSY said, “We are offering the latest changes in DVAT absolutely free to our existing users of BUSY 16. Our earlier versions are no more being sold by us since Dec 2015.  The charges mentioned according to ADCTA are upgrade charge from BUSY Version 14 to 16 (Rs. 2700 + VAT) and BUSY Version 12 to 16 (Rs. 4500 + VAT) for Standard Single-User edition.  By paying these charges, user gets an upgrade from earlier version to version 16 wherein user not only get latest DVAT changes but also so many additional features”.

“More than 5000 existing users of BUSY 16 have got free upgrade for new DVAT requirement. It is absolutely wrong to state that we are using this occasion of making money as BUSY 16 was launched much before the DVAT changes were announced.  We have, rather, incorporated these changes in BUSY 16 in quickest possible time so as to ensure timely VAT Compliance by our esteemed Customers.  And I would re-iterate, we are offering this free of cost to our BUSY 16 users”, he added.

Reacting on the same, Shivaram Lakshminarayan, spokesperson from Tally said, “Tally, in its 30 year history, has never expressly charged any customer for any specific change in any tax laws, including very massive changes like introduction of Service Tax, or transition to VAT. In fact, it has pioneered an extremely simple and friendly way for people to remain current with all changes to software as well as tax laws for an entire year by paying a very nominal fee, and receiving frequent updates and upgrades. This misrepresentation that Tally is taking advantage of changes of law is unfair to the effort and care that we have been proud of, and for which our customers have shown their loyalty and affection”.