In the wake of nation-wide lockdown due to COVID-19, the national federation of IT associations representing IT trade fraternity involved in retail, distribution, services and solutions, FAIITA has issued two separate advisories ahead of the month ending; one to state IT association members and other to national distributors’ association, TDAI.
In response to FAIITA advisory, several State IT associations have further written to local offices of national distributors and IT companies for not presenting post-dated cheques under present uncertain circumstances. Punjab based PACT has already appealed to national distributors to stand next to dealers and not present cheques till situation normalises.
The PACT advisory stated, “For all these years, dealers have stood test of time and accountability, but this is time to show solidarity towards each other. Dealers’ accounts should not be put under shadow of negative CIBIL or TDAI reporting as they have no control over it.”
It added, “As far as targets are concerned, vendors are advised to either consider the targets already completed as targets achieved or to give a grace period to complete the targets after the situation becomes normal.”
Gurpreet Singh Jagdev, Vice President, PACT, said, “Following FAIITA advisory, PACT has written to local offices of all major distributors operating in Punjab. We are trying to maintain the lockdown period and seeking business support from our partners until the business operation normalises.”
Meanwhile, FAITTA engaging with TDAI for further deliberations on this.
Speaking to CRN India, Kaushik Pandya, President, FAIITA stated, “On behalf of our state IT associations, we have written to TDAI, stating that across the country, sales is not happening and our members are seriously stressed because of the non-fulfilment of targets assigned to them. We have requested both national distributors and vendors to revise the targets based on the actual performance of dealers and they should be paid full payouts on actual business conducted by them for February and March.”
FAIITA is also wanting to extend the credit period for payments. However, those dealers who have capital to pay back to their national distributor can make payments.
“As the payments for the stocks sold to T3 partners are not received by the T1 or T2 dealers, an extra credit period is needed in the entire billing cycle of February and March, so we request you to issue instructions to your national distributor/ credit department for allowing extra credit of 30 days. So far, both TDAI and vendors have assured their support during lockdown period and we have not received any further cheques complaints after the lockdown, however there were few before the lockdown. We are in touch with our members and monitoring the situation,” added Pandya.
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