VAT added on MRP

admin

July 7, 2012

This is not illegal, but perfectly normal. Here is the calculation:
MRP = 100
VAT = 12.5% (for example)
VAT amount = 100 x 12.5/112.5 = 11.11
Discount of 50% on MRP = 50 Rs.
Total price at 50% discount = Rs.50+11.11 = 61.11

Mrs F Diminieux

July 13, 2012

Dear Sir, Thank you for your response. That is exactly the way the amount was billed to me. However my question would be, isn’t the discount advertised incorrectly. If VAT is 5% than shouldn’t the discount be after VAT. so the discount offered is 20% but after tax you only get 15%. Also what if there is no discount offered but a flat rate such as 3 tshirts for Rs 450/- can they add vat to this…. Please respond.

Anonymous

July 16, 2012

vat calculations are totally wrong.Pentaloons is making fool all his customers and soon pantaloon will have to payback all the money to its customers.Taxes are always paid on sale price only.

admin

July 16, 2012

Correct, VAT calculation is correct but discount % is misleading.

Anonymous

July 16, 2012

If Pentaloon wish to charge the VAT from its customers Pentaloons should show the his cost of manufacturing of puechase, margins and other overheads on the bill.Pentaloons can charge the VAT only if he is showing sale on 100 % price in his books and paying tax on 100 % price to the government.While he is showing sale on 60 % price,then he cannot double loading the tax on customer.In this case the discount should also be on the rate without tax and the tax should be added on discounted price.

Rakesh Kumar

July 16, 2012

Pentaloons should show all his rates with taxes wheather it is on 100% rate or on a discounted price.All the discounts should be on rates only and they should display the rates of taxes on various items line 5% on clothes and 12.5% on shoes.Pentaloons should avoid confusing calculations.

Mrs F Diminieux

July 17, 2012

How can we take this forward and file a dispute against this outlet. They have been misleading the consumer showing big bulky discounts and then adding vat, when in fact there has been no value added to the product.Also the rate of tax differs and as mentioned by Mr Rakesh Kumar, the rate should be displayed prominantely. I have recently shopped at Globus and they have not added any vat. They too are having good discounts but no extra tax is being charged. Why is there no standard rule when sales are on.

Ranjan Goenka

August 26, 2012

My concerns are the same … Pantaloon may be OK as far as the tax compliance is concerned but they are misleading the customers. If you are offering a discount of say, 20%, it must be on the basic price (i.e. MRP less VAT component) and subsequently charge VAT. Pantaloon is giving discount on the MRP which already includes VAT and after discount, again they are charging VAT. If required, I have scanned copies of their bills that is with discount and without discount wherein things are crystal clear on their non-transparency and their intention to fool customers.

Suvendu Biswas

September 18, 2012

It is not only pantaloons but all the Future group retailers are taking VAT on MRP. My question is is VAT not included in MRP? If yes, my next question is “When we are buying some product without discount or buy 1 get 1 kind of thing then they are taking MRP price. In this case where the VAT goes?”

Ujjwal John

November 5, 2012

Mr Admin,
Though you look all the authority to talk on this topic, but I have my own common sense to claim you are WRONG.

MRP : Manufacturing Cost + Producers Profit + Taxes on Raw material + ( Dealer + Distributors Margin )+ Sales Taxes .
So there is already double tax component added, to eliminate which VAT was introduced. MRP includes ALL the taxes, and I have never seen any other FMCG/Durable shop adding Tax on MRP. In fact in the invoice, they break down the MRP into base price and VAT/taxes.

Forget Anything, All tax regimes talks about TAX on the item’s price at which is is sold and not at with it was priced. Adding VAT on MRP is a blatant Tax evasion Corporates India is committing, exploiting the lack of VAT awareness of auditors and other loop holes.

Why the Consumer should pay taxes again ? say if there was no Discount, would they have added the VAT still ?? The Retail items they sell (Brand Factory/Pantaloon) in elsewhere (Levis/Nike/Rebook) does not put extra tax over MRP ?? Its time people clam down there corrupt Banias of the country who are more sinister than the Politicians and Babus.

admin

November 7, 2012

There is nothing wrong with our explanation, perhaps you did not understand the problem. Agree that VAT is part of MRP, hence the calculation is not MRP x 12.5%, but MRP x 12.5/112.5.

In case of discounts, when the retailer is saying that they will charge VAT on MRP, they only mean that they will charge only the original rate of VAT which was included(and paid to the tax department) in the MRP, and not on the discounted rate.

So if a product is on 50% discount on a MRP of Rs.100, then the VAT charged will be 100 x 12.5/112.5 and not 50 x 12.5/112.5

Hope this is clear enough.

Admin

Augustine

November 14, 2012

without price tag, Manufacture date,warranty i was purchase some product, that price is 4400.. the shop owner not give the proper bill after long fighting he give some VAT bill..without price list, Manufacture date warranty how he give VAT bill it is legal r not?

Sunit Uppal

December 17, 2012

Dear Admin,

Just wanted to check with you. In case I have paid full amount as mentioned in MRP (no discount) which also says MRP inclusive of all taxes, can store still charge me VAT over and above that. 5% on Clothes & 14% on shoes?

It is still legal or store should not be charging VAT ?

B.RK

January 1, 2013

I have faced The same thing today with arvind brands at safina plaza.The mrp includes all taxes excise and vat.Essentially on a product we pay 5.5% vat,then get a 50% discount on the product and then again we pay 5.5% vat,where does this money go.
Dear admin,if I buy a product On 50% discount which has an mrp of Rs 100….the working should be Rs 100-5.5%=Rs 94.50 on which 50% is Rs 47.25 and then I am charged vat @5.5%=Rs 50,but I payed Rs 50 plus5.5%=52.75.
where did the 2.75 go,is it going to the govt,when it is taken in the name of the govt.How can this be correct.
This is cheating.
Unfortunately my bill was not a mere 100….and I voiced my opinion pretty loudly with a long queue of shoppers behind me….but the till continued normal business.
Jaago India jaago.
I would like to lodge a complaint…..could anyone help please.

arpit

January 9, 2013

Hello admin,

I would like to point out in your calculation that first of all every MRP includes VAT. Also, you cannot charge VAT on an amount which you are not paying. So in your case if my MRP has gone down to 50 Rs then the retailer cannot charge me VAT on the original MRP of 100 Rs because his liability to pay the govt will only be the VAT on the price collected (i.e. 50 Rs in this case) which means that he is pocketing away half component of the VAT taken from the customer.

Vij

January 12, 2013

Man it never comes to the brain as if you enter their outlets that they charge additional vat. Infact you realize this only when you check you bills, and it used to be too late :-). It’s so simple, the VAT which they paying to GOV, which is included in the MRP is actually not discounted, so ideally your discount is 15%, if it was originally kept as 20%, and that is pure cheating. So they should only display the correct discount, which they are not doing, because they know the human tendency. I wasted again recently..infact yesterday..no more shopping at pantaloon he he..

Ankit

January 14, 2013

Dear Admin,
In my case the price of the product was 1199/- inclusive of all taxes. After calculating all discounts the price came down to Rs. 669. Then I was charged VAT@5% on Rs.669 i.e. Rs. 33 taking the price to Rs. 702. I suppose as per the explanation given by you the tax should have been on 1199 and not 669. But this is how pantaloons has charged me, I fail to understand the same.

sudipta paul

January 14, 2013

This is the reason i have stopped buying in Pantaloon. I hate this kind of covered cheating on public moneybag. Common people doesn’t understand before he pays the bill … the kind of fraudulent business policy Pantaloon is following.

taxbaba

January 20, 2013

this is wrong practise…during some discounts mamufacturer adds a separate tag which is lower than original Mrp. The new tag with lower price clearly sats price includes all tax but still retailers charging additional. This is undue enrichment liable for punishment

Heman Ajmera

January 20, 2013

Hi Guys,

This is a pure case of misleading and cheating the customers.

I wouldn’t mind fighting for this. My contact details are as below:
email – [email protected]
Contact number: +91 9820307364

Let me know, if any one is interested in stopping this nonsense.

Jaya Sinha

January 21, 2013

Yes … yesterday pantaloons cheated me also .. Never going there again ..But wht can v do abt it … [email protected]

Reshma Changedia

January 23, 2013

Future groups store Central also did the same.They charged VAT on a MRP which was inclusive of taxes as it was at a 50% discount.They are cheating the customers.Other international brands like Aldo,Charles & Keith didn’t charge VAT again on discounted price .We need to do something about this Please contact me on [email protected]

Chaitali Das

January 24, 2013

Hi..I am also here writing about the same problem I came across in Bangalore central.
1.They say “FLAT 50% off on MRP” then on Bill they are deducting VAT ON INDIVIDUAL ITEM ( 5.5% on apparels and accessories, 14.5% on shoes), that means we are not getting flat 50% discount.This is CHEATING.
2.Another thing 99% of the customers don’t even know they are being made fool because they are so busy that they dont even check the bill.This is being IRRESPONSIBLE Citizens.
3.Even after knowing we are being cheated most of us think–its hardly a matter of 50-100 bucks so let it be.Its wrong attitude.

We need to unite and boycott such things. If not now then never. we will keep making fool of ourselves. Time for action. Can anyone share the contacts for consumer complain??

Rajan

January 24, 2013

Dear All,

I have gone through all your communication and I agree your view. Have you checkedup one thing before you purchase / make payment???

Please checkup clearly in and around the billing counter of any malls like pantaloon, brand factory etc., there is a dispaly saying “VAT will be chaged on discounted amount”.

Raul RN

January 26, 2013

Dear All,
It happen to me today as well in the Color united benetton as well. They have given fiscount of 40% but charged the 14.5 % on the sales price. I really got misleaded as they have given big ad of 40% but you would end up paying more. Can somebody epxplain on this. If the % discount is more than 14.5, after the VAT, the total price might be still lower than MRP, but think about the situation where the discount is 5-10% on products like shoes, then shop charging 14.5 % again on sales price. It would be definitely be more that MRP.

Anshuman

January 26, 2013

Dear All,

Please note that the VAT is applicable on the PRINTED MRP on the product and not the Selling Price. Please differentiate between PRINTED MRP and SP. Discount is made on the MRP but VAT is always charged on the PRINTED MRP as VAT chain has cascading effect.

Ritesh

January 28, 2013

IT is correct that VAT is charged on PRINTED MRP and not on sale price(which can be discounted price)….the real position is that:

If you purchase goods on MRP (fresh arrival stock or etc) , the shopkeeper does not charge any VAT that means there MRP is inclusive of VAT..For example
MRP = 100
VAT = 12.5% (for example)
VAT amount = 100 x 12.5/112.5 = 11.11
means that shopkeeper has to collect 11.11 at any cost irrespective of their selling price.
Now from customer point of view , on what amount the discount has to be given 50% on MRP or 50% on (MRP less Rs 11.11) ?????..

Ideally it should be on 50% on (MRP less Rs 11.11)…because in current scenerio either they are showing wrong discount percentage of collecting 1.5 times of actual VAT amount.

lavraj

January 30, 2013

I would like to ask comsumer forum, have the Pataloon as a company not cheating customer or misleading them. Should not any action needs to taken against them or any other company which misleads the customer

SHANKAR

February 1, 2013

Faced Similar problem at Puma shop, Select City walk saket. First given 50% Discount, then added 5% VAt worth Rs.60.

Anonymous

March 13, 2013

sir i purchased legrand switches and shop keeper first charged 14.30% vat on mrp then he gave me 42% discount on amount i.e mrp + 14.30% vat . is he correct . please guide me .

sonu kumar singh

April 5, 2013

i want to know that we should pay vat on mrp or not?
ie if some one is selling any stuff in more than mrp(with vat ),is it ligal?

Shrenuj

July 9, 2013

I also Faced the Same situation….when i objected after 1 hr they waive off that 5 % extra amounting to 1000Rs
but sometimes shopkeeper say upto you to purchase or not….
this is wrong
For example If an article is of Rs. 100 and 10% VAT is charged its MRP becomes Rs.110
and than they give 30% discount and price becomes Rs.77 in which 70Rs is for article and 7Rs VAT @ 10%
but shopkeepers charge 5% extra on 77 which becomes Rs. 3.5 approx.
They are charging 5% additional VAT on VAT…which is wrong

Anonymous

July 11, 2013

Pure Home Living Store in DLF Place Mall Saket is indulging in blatant false advertising, luring people into the store with signs that say discounts of up to 60% but then turning around and quietly charging clients over 12% VAT on prices that are clearly labelled as “inclusive of all taxes”. I picked up some items that were meant to be on sale with 20% off but when they made the bill – they had charged the tax of over 12% so my discount was a mere 7%-8%. I told them that they cannot charge tax on prices that clearly say “inclusive of all taxes” but they were not interested saying that it was corporate policy and then showed me a sign that was lying hidden on the check out counter – not where the sale signs were. When I asked to meet the manager, a person who called himself Akash came to the desk and he had a “could not care less” attitude which just added insult to injury, BUYER BEWARE – Pure Home is indulging in FALSE ADVERTISING!

Sushil

July 17, 2013

It is quite confusing and now all retailers big and small are doing this. In my opinion they are fooling customers. MRP includes all taxes including VAT. I think they should charge extra vat only on discounted calue. Let me explain.
For example a shirt has MRP Rs. 1000 which is basically basic 952 + vat 48 (5%)
Now let us say there is 20% discount 1000 – 20% = 800
Since this discount of Rs.200 also contains VAT (190 basic + 10 vat) which should have gone to Govt.
Atctual price should be 800 + 10 = 810
what they actually charge is 800 + 5% of 800 = 840

Simply put customer should Pay VAT at actual price 952 in this case because offerings sale is purely sellers problem. Govt will recover VAT on book cost. But these guys are charging more.

daniel miranda

July 20, 2013

Dear Sushil,
I agree with you. Even I have got the whole gist of it now after yesterday’s purchase where I have identified what the cheating is all about. Basically, assume MRP 1000/- . Actual price 950/- without VAT (5%). now 50% discount 475/- . add VAT (24/- at 5%) to the discounted base price is 499/- . the amount that Pantaloons should be charging. Now consider their gimmick. 1000/- at 50% discount. 500/- base price. add VAT (25/- at 5%) to their discounted price is 525/-. Now I don’t know why or how but yes Pantaloons is cheating the public and its brilliantly or stupidly done. Depending on the consumer. Basically, discount should just be 1000/- (MRP – MAX RETAIL PRICE which already had your VAT) divide by (500/-) rather than all this.

Ramya

July 22, 2013

Hi ! Same thing happens in Lifestyle too. What is the way I can take action on these retailers ? Please tell me !

Santosh C

July 24, 2013

If MRP reads (inclusive of all taxes), then how can then add VAT to it?

mohit

July 29, 2013

same thing happened with me at the UCB store….they did a double blunder firstly the same thing happened with me i was given 50% discount on mrp and then was charged 5% additional vat tax on the same..

secondly, the shopkeeper did not gave me the computerised bill but instead gave me his own and written bill.

i really want to complaint rearding both the issues..anyone who has taken steps regardin the same please reply and also anyone who wanted to complaint rearding both the issues kindly contact me at [email protected]

NAVIN LANJEWAR

July 30, 2013

i have purchased from brand factory Nagpur and i asked them why they are charging vat additionally when discount is on MRP which is inclusive of all taxes ( i kept that bill with me for further legal procedure ), they show me the one of charted accountant certificate that VAT charge by store is legal ( photo of this certificate is with me). i need legal help to solve this issue. my cell no. 9823101801.

sibasish

July 31, 2013

its completely cheating.. future group is making us fool in example if u r buying a shoes of m.r.p 1000(including 13.5 %)
after discount @10 % 900
if we ll add vat@ 13.5 % ( 121.50 rs)
the it will be 1021.50

what to do here ? we got discount or have to pay extra ??

sibasish

July 31, 2013

ooppsss sorry vat is 12.5%

vidushi jain

August 7, 2013

yes all these stores are cheating on public.bad experience with lifestyle stores.

Avinash Kumar

August 11, 2013

Dear All Consumers ,
Vat calculation is not wrong on discounted MRP they are charging right amount the diffrence is they are or even there is no one giving you right calculation which is making confusion here i am giving you ans in layman language which we understand
Example :
MRP 1595/-
Vat 79.75 /-
Value of company 1515.25/-
Dicount 50%
Discounted MRP 757.63
Vat 79.75
Total 837.38
There Calculation 1595*50%+5% vat of discounted MRP 837/- which is correct

Avinash Kumar

August 11, 2013

I Think now we are not going to point out any orgnization as its right.

Anonymous

August 24, 2013

Dear Admin,
Like all , i too have been in this situation of paying VAT on discounted items while shopping from Pantaloons or other similar stores. In this regard i have 2 queries –

1.) In ur example u say that MRP is Rs. 100. Now if there is no discount, what would i had been paying Rs. 100 or Rs. 112.5, because they do not charge VAT in their bill when there is no discount.

2.) According to me , the calculation must be like this in case there is a 50% discount…
Please have a look and give your opinion.

MRP – Rs. 100 (including 12.5 % VAT)
VAT- 12.5*100/112.5 = 11.11
Discount on MRP = 50 %
After Discount = Rs. 50
Now 50% of VAT amt is already included in this Rs. 50 (discounted price) i.e 50% of Rs. 11.11 = Rs. 5.55
Bal. amt. of VAT to be deposited with GOVT. must be only 50% of original VAT amt. i.e. 50% of Rs. 11.11 = Rs. 5.55
So, the final bill amt must be = Rs. 50+5.55 = Rs. 55.55 and not Rs. 61.11 as calculated by the admin.
I think this calculation is fair enough.
Please Reply.

Consumerforums admin

August 24, 2013

Fair assumption, but VAT is on “MRP” – a 50% discounted price is not “MRP”

So while there is discount on the MRP, there is no discount on the VAT. Hence the VAT cannot be split into half as you have illustrated.

Anonymous

August 26, 2013

So it means we will have to bear the hardship of paying tax doubly on the undiscounted portion in order to abide by the Act.

Ankit Jain

September 30, 2013

Dear Admin,

As per your calculations and explanation I agree that you are absolutely correct.
But with above calculations they cannot claim that they are still providing 50% discount or 20% discount.
They need to pass the right message to their customers.
Its all about what message you communicate to your customers.

If effective discount for a consumer is 15% only they should mention it in a way that the same gets communicated and not misunderstood by consumers.

Probably government aware of all such queries should take some step in this manner to convey the right information to the end user.

Sundar

October 7, 2013

Dear Admin,,

I purchased shirts from Europa on buy 2 get 2 free offer… I picked two shirts of value 1300 each and two shirts of 1100 each and they billed for the higher priced shirts i.e., for Rs.2,600/-.. and also charged vat 5% on this price. I argued that VAT should be collected for the free shirts only i.e., for 2,200 which they didnt agree. Is this correct… please advise…

rathib

November 28, 2013

everyone confused about VAT being charged on MRP instead of actual sale price,

there is a separate category of products called ‘VAT on MRP’ products. on these products, VAT will always be applicable on MRP [mrp*vat%/(100%+vat%)] irrespective of the discounts given.
so, it is possible that in the same bill, you will have certain ‘normal VAT’ products and certain ‘VAT on MRP’ products. For normal VAT products, you will be charged VAT based on the sale price while in the other category, you will be charged VAT on MRP even if the discount is 90% or more or less.
additionally, VAT collected by the company as a separate head in the bill is always paid to the government even if they collect more VAT by mistake. if they collect less VAT, then they have to pay out of their pocket.

Vikas Khattar

December 10, 2013

Can anyone brief what’s the outcome of complaint to Consumer Forum on Pantaloon case on double VAT /taxation, as same practice now Ritu wears are also adopted ?

Which i feel is an punishable offense .

Regards,

Vikas Khattar

A kanwar

January 10, 2014

I agree with all the members.. it may be legal , but in the end consumer feels cheated. Majority of conusmers donot do such calculations. They are enticed by large sale 50% etc.,

Retail is B2C market. there is no point to break the price and charge vat extra.. Its just to entice conusmer and mislead them.

I have bought a muffler thinking 25% discount from wills lifstyle. VAT on muffler(accessries is 12.5% and on 5%)… VAT is different everywhere.. how can consumer know all tax rates…

Please guide where to escalate this…

Citizen

January 14, 2014

Dear All Consumers ,
Vat calculation is not wrong on discounted MRP they are charging right amount the diffrence is they are or even there is no one giving you right calculation which is making confusion here i am giving you ans in layman language which we understand
Example :
MRP 100/-
Vat Rs 4.76 /- @ 5% (Say Apparels Formula = 5/105*MRP)
Value of company 95.24/- (Sellers or Any retail company)
Dicount 50%
Discounted MRP 47.62 (50% on Rs 95.24)
Vat to be added Rs 4.76
Total Rs 52.38 (To be charged from Consumers)
There Calculation 100*50%+5% vat of discounted MRP 52.38/- which is correct.

VAT collected by the company as a separate head in the bill is always paid to the government even if they collect more VAT by mistake. if they collect less VAT, then they have to pay out of their pocket.

C

January 19, 2014

All discounts at SHopper’s Stop and Lifestyle as well…they are charging 5% VAT on all discounted products. They say they have been doing for past two years now. This is not right and has to stop!!!

Gaurav Kumar

January 26, 2014

Be WARE !!!! big bazar is doing cheat on 50 % off . they are charging vat on mrp .
lets say 1400 MRP jacket after 50 % will final billed as 700* 5%AOT + 700 i:e 35+700=750 . after complaint they are asking for refund Rs 35 .two three customer taken refund also…but not all , it is partial to customer making fool with out setting the right bill to all customer and even they are not sharing such fact . its happened in Big Bazar NOIDA Great INDIA Palace on 25 jan 2014…when we go for 50 % discount its simply on MRP so very first is final billing of 700 of 1400 after 50 % discount. plz share such things in social network ..like face book ..its type of cheating openly taking the fame of 26 jan sale 2014.

Gaurav Kumar

January 26, 2014

they are confusing in three terms:
buy one get one. not charging 5% vat on mrp to final bill.
50 % discount on single item adding 5% vat on mrp to final bill.
buy product costing 399 , buy 2 @ 555 adding 5% vat on mrp to final bill.

GAURAV KUMAR

January 26, 2014

Big Bazaar leases 50 trucks to sell products during the 3-day Republic Day sale

http://articles.economictimes.indiatimes.com/2014-01-21/news/46411462_1_big-bazaar-direct-sabse-saste-future-group

Be WARE !!!! big bazar is doing cheat on 50 % off . they are charging vat on mrp .
lets say 1400 MRP jacket after 50 % will final billed as 700* 5%AOT + 700 i:e 35+700=750 . after complaint they are asking for refund Rs 35 .two three customer taken refund also…but not all , it is partial to customer making fool with out setting the right bill to all customer and even they are not sharing such fact . its happened in Big Bazar NOIDA Great INDIA Palace on 25 jan 2014…when we go for 50 % discount its simply on MRP so very first is final billing of 700 of 1400 after 50 % discount. plz share such things in social network ..like face book ..its type of cheating openly taking the fame of 26 jan sale 2014.

as per “Citizen ” comment :
50% discount is on base price (value of company) not on MRP. which means “flat 50% off ”
but due to retailer ad in tricky way customer get fool and he or she mean it as 50% off i:e MRP/2= FINAL BILL.

Retailer should advertise it as discount on base price, where as they say.. up to 50 % discount or 50 % discount or flat 50% off .

NOW SEE the 4TH TERM to check:

1st***buy one get one means not charging 5% vat on mrp to final bill.you can get one more product on mrp or retail price tag.

second ***** 50 % discount on single item means adding 5% vat to half of the base price of mrp. ( here mrp =base price + vat ) to final bill. CALL IT up to 50 % discount or 50 % discount or flat 50% off .

third ****buy product costing 399 , buy 2 @ 555 adding 5% vat on 555 to final bill because its type of discount.but this third one is confusing as after complaint reatailer ask to refund vat value added on 555.

fourth**** term is get “flat 50% off on MRP” in this pay 50 of tag price only.

So BEWARE OF VARIOUS TERM ITS BETTOR TO ASK FINAL BILLING B4 BUY. BUT DUE TO SEPERSATE BILLING SECTION IN IT IS NOT EASY AS BIG BAZAR SCENARIO.

GAURAV KUMAR

January 26, 2014

Big Bazaar leases 50 trucks to sell products during the 3-day Republic Day sale

http://articles.economictimes.indiatimes.com/2014-01-21/news/46411462_1_big-bazaar-direct-sabse-saste-future-group

Be WARE !!!! big bazar is doing cheat on 50 % off . they are charging vat on mrp .
lets say 1400 MRP jacket after 50 % will final billed as 700* 5%AOT + 700 i:e 35+700= RS 735 . after complaint they are asking for refund Rs 35 .two three customer taken refund also…but not all , it is partial to customer making fool with out setting the right bill to all customer and even they are not sharing such fact . its happened in Big Bazar NOIDA Great INDIA Palace on 25 jan 2014…when we go for 50 % discount its simply on MRP so very first is final billing of 700 of 1400 after 50 % discount. plz share such things in social network ..like face book ..its type of cheating openly taking the fame of 26 jan sale 2014.
as per “Citizen ” comment :
50% discount is on base price (value of company) not on MRP. which means “flat 50% off ”
but due to retailer ad in tricky way customer get fool and he or she mean it as 50% off i:e MRP/2= FINAL BILL.

Retailer should advertise it as discount on base price, where as they say.. up to 50 % discount or 50 % discount or flat 50% off .

NOW SEE the 4TH TERM to check:

1st***buy one get one means not charging 5% vat on mrp to final bill.you can get one more product on mrp or retail price tag.

second ***** 50 % discount on single item means adding 5% vat to half of the base price of mrp. ( here mrp =base price + vat ) to final bill. CALL IT up to 50 % discount or 50 % discount or flat 50% off .

third ****buy product costing 399 , buy 2 @ 555 adding 5% vat on 555 to final bill because its type of discount.but this third one is confusing as after complaint reatailer ask to refund vat value added on 555.

fourth**** term is get “flat 50% off on MRP” in this pay 50 of tag price only.

So BEWARE OF VARIOUS TERM ITS BETTOR TO ASK FINAL BILLING B4 BUY. BUT DUE TO SEPERSATE BILLING SECTION IN IT IS NOT EASY AS BIG BAZAR SCENARIO.
https://consumerforums.in/vat-added-on-mrp/comment-page-1#comments

marketrun

April 5, 2014

This forum topic has been running for more than a year but sadly not a single person has said if its right to charge vat above mrp.
I paid 22rs for a biscuit packet with mrp of 20 …..its common sense to think this is wrong

What is use of mrp when consumer is paying above the printed price

Same biscuit packet I purchased from star bazaar and my local stores @ 20

Does this mean a large business house like big bazaar is able to cheat and loot millions of consumers across India blatantly

Forget corruption we need to stop this first, because every 1 rupee may not be big for individual but think millions of such daily …..could become biggest scam

I fail to understand how government or any other authority can allow this

Ajaya

May 9, 2014

We have face same proble at shoping at BiZ Bazzar, disclosed 20% cash back offer but charges additional VAT after 20% discount, This is purly cheating to customer.
The price tag disclosed MRP includes the VAT, If compnay disclosed 20% cash back means to give the discount 20% on MRP to customer.and VAT will be proposnately calculated after discount figure., If there is provision in VAT rule/Act pls share the rule .

amit

June 4, 2014

VAT is the tax imposed by govt. On manufacturers then why they incude it in customer’s bill? Secondly, i have rsad somewhere that it is in the provision of law that manufacturer can claim back VAT from govt, so is it not the duty of manufacturer to give back the subsided money to customer. Is there is any provision where customer can ask for refund on VAT from either manufacturer or govt.?
Thanks

AJAY KUMAR

June 18, 2014

I HAVE A MEDICAL STORE I PURCHASE MEDICINES FROM STOCKIST AND SELL THEM TO CUSTOER
FOR EXAMPLE
MRP OF GOODS 1000
PURCHASE AMT 900
5%VAT ON 900 45
I PURCHASE THIS GOODS FROM STOCKIST IN 945
SOLD TO CUSTOMER IN 1000
THEN TELL ME THAT NOW HOW MANY VAT I PAY TO

ashish

June 26, 2014

Hi all
i have one concern how this vat scenario work in retun cases
si have purchased one puma shoes with MRP OF 7299 when the offer was 40% so it cost me 4379 +vat but due to some deefective product i have replace that shoe with the mrp of 6999 with the same 40% discount then they again charging vat on my shoe and giving back of amount 4379
is it practical
please suggest it is expected

Bibekananda Jena

July 3, 2014

Taxable VAT basis amount is calculated like (MRP – 40% of MRP) irrespective of sale price and paid to Government. This is the formula for calculating VAT basis amount as per Maharashtra VAT laws.

When they are putting advertisement as 40% discount they should pass that discount to the customer other wise discount should be net of VAT . Further VAT charged by GOVT will not reduce by the %of discount.

Rajnish Kumar Goyal

July 4, 2014

Basic Data:
M. R.P. of item: Rs.3000 ( i.e. includes all taxes)
VAT: 14%
This means it has two components:
Sell price (Rs. 2632)+VAT( 368). Thus if I purchase this item, the seller will pay Rs. 368 as tax to Govt. I think there is no dispute on this.
Case 1: The shop displays Discount=40%.
The shop charges: 60% of 3000=1800 + VAT @14% i.e. Rs. 252, Total =Rs. 2052
The anomaly is that this discounted amount of Rs. 1800 itself contains two parts:
1. Rs. 1579 after 40% deduction on sell price component
2. Rs. 221 after 40% deduction of VAT component
Now to charge 14% again on this Rs.221 is not correct as it is double taxation.
The shopkeeper must charge 14% only on 1579 i.e. Rs. 221 only thus Rs. 1800 in total. Additional Rs. 221 charged is incorrect
Case 2:
The shop displays Discount=10%.
The shop charges: 90% of 3000=2700 + VAT @14% i.e. Rs. 378, Total =Rs. 3078
Again this discounted amount of Rs. 2700 contains two parts:
1. Rs. 2368 after 40% deduction on sell price component
2. Rs. 332 after 40% deduction of VAT component
Now the funny situation is that the entire payable amount becomes more than the M.R.P. itself. Is this really a discount in such a scenario.
That is why charging VAT on discounted amount is improper.

Anonymous

July 11, 2014

hi,
pantaloons is charging vat on discounted price, ie on mrp (inclusive of all taxes)less discount + additional vat on dicounted price. it is just double taxation of vat. they are cheating there customers . vat is already included in mrp .what to do…….

Anonymous

July 11, 2014

pantaloons is charging vat on discounted price , mrp (inclusive of all taxes)- discount on sale say 20%+ vat @5%. they are cheating their customers as it is double taxation of vat. i had with me the bill & mrp tags. i simply agree with above person rajnish kumar goyal comment. strict action should be taken against it by consumer forum as per my view they are misleading on name of sale.

Dhawal Varma

July 13, 2014

Hi,

Today, i also got cheated by pantaloons. ….. the same way of double taxation of VAT.

I need to understand that is there any way to stop this thing or these big companies are going to loot us everyday.

I real strict action has to be taken against the frauds which these big companies are doing for long now.

Pls advice me….

narayanan

August 16, 2014

What is done by the sellers is perfectly correct.
Let me explain.
If MRP of a particular goods is Rs. 2,000/-. Then, this includes all the taxes. A seller may want to sell it at Rs. 2,000/- and then the consumer pays only Rs. 2,000/- which includes all the taxes.
Now, if the seller sells the same at Rs. 1,000/-. The Govt. does not believe that the person has sold it only for Rs. 1,000/- and will not be satisfied with a deposit made by the seller of only tax which is commensurate to a total price of Rs. 1,000/-. So they will ask for the tax on the other portion also.
Govt will assume that you had an MRP of Rs. 2,000/- and hence you ought to have given me taxes which is proportionate to the price being such that the MRP is Rs. 2,000/- . Hence Govt will ask for tax which is unearned by them, if you sell for less. Now, this leads to the seller seeking the VAT component in the other Rs. 1,000/-.

Hope the issue is now clear.
All persons who have practiced in tax will know that this is a very basic issue.
The problem is the rate. Some people charge the flat 12.5% on the balance Rs. 1,000/- instead of grossing. That is an issue.

Anonymous

August 24, 2014

Sir,

I’m a retailer and I procure certain items from a distributor in 12.5% discounted rate.
Now my question is : I have been deducted VAT @ 12.5% of my total amount of products at Tax gate and the carrier deducted 6% of Total amount as carrying charge. Now i have paid total of 18.5% for bringing the products from distributor to my shop.
Therefore, my profit margin = 12.5% – 18.5% = (-) 6% Loss of 6% for me.
Now how can any retailer carry on the business with 6% loss every time??

For Example :
MRP of a product is Rs.100/-
Margin i get is 100 x 12.5% = Rs. 12.5/- = I procure for Rs.87.5/- per product.
Now VAT @ 12.5% of Rs. 100/- = Rs.12.5/- deducted for VAT = 0% profit for me.
And, Transporter Charged @ 6% x 100 = Rs.6/- paid to transporter = Rs. 6/- loss in a product.

Isn’t VAT is to be borne by the consumers ?

Rajesh sHETTY

September 11, 2014

what is the differnce between VAT rate5.5% &14.5%

Nitesh

September 19, 2014

Admin

I have one query about the Amt, they always put last figure in 99.
e.g. if one product is for 5000/- they put in 4999/- .
is this any way to save the tax or any other reason.
if any tax is applicable then in which section its will come….
Sorry to ask you this type of Q.

Anonymous

November 17, 2014

I ordered a pizza say for Rs 350/ , they charged vat @14.50% , is it true to charge vat on MRP

Pramod

December 5, 2014

Tax applicable only on discount mrp.

Sandeep

December 11, 2014

Dear All,
I am going to start Grocery Store in Chennai and now want to know about VAT. Pls let me know where I will get VAT % on Category wise like Some of item 4.5% and some of 5% and some of 114.5% Like this I want to know. means how much % on edible oil like gold winer. I have one question also.

I bought GOLD WINNER OIL from wholesale in Rs.70 ( just for example)
GOLD WINNER OIL MRP is Rs.86
As Wholesaler also paying VAT 14.5% ( for example ) to govt.
So when I am going to sale is in MRP Like Rs. 86
so what will be the vat calculation for me.
Example:-
MRP:- 86
Wholesale price :- 70 ( including vat )
Total VAT for the product :- 86*14.5%= 12.47
Paid by Wholesaler = 70*14.5% =10.15
and Now I have to pay only = 12.47-10.15 = 2.32

And I want to know one thing if I want to offer some discount and want to sale GOLD WINNER in Rs. 80 I have to pay vat to govt. based on selling price or MRP.

MRP:- 86
Selling price :- 80
Wholesale price :- 70 ( including vat )
Total VAT for the product :- 80*14.5%= 11.60
Paid by Wholesaler = 70*14.5% =10.15
and Now I have to pay only = 11.60-10.15 = 2.32

pls correct me if I am wrong..

PRATEEK SALAMPURIA

December 27, 2014

sir,
I went to a place where the compny lays has its MRP rs.18. Now, i wanted to find if it is legal to add VAT tax on that chips packet on which it is written inclusive of all taxes ???? And if its illegal,how do we expose these people?

PRATEEK SALAMPURIA

December 27, 2014

sir,
I wanted to know if the service tax is to be charged on the service the provide or the whole bill?
suppose
cocacola rs 20
sandwich rs 100
ice cream rs 30
total rs 150
service charge rs 30
service tax rs x% of 180 or x% of 30

sreeni

January 25, 2015

SIR,
I have replaced my mother board of computer. It’s MRP is 3350 (Inclusive all taxes). But the shopkeeper give me a bill like this.
Mother board—- 3333.33
Out put Vat@5%—166.67
Total—-3500.00 (Three Thousand Five hundred). Is it Correct?

Anirban Chatterjee

March 8, 2015

I have bought Intex Aqua Qwerty mobile worth 3940 INR from flipkart. The product is faulty and from the very first day it’s not working properly. Twice my return request has been rejected. When I tried to service the mobile from service center, they are not providing any service as the Invoice Doesn’t Have Any VAT Number.
I think vat less selling is illegal and should be prosecuted.
Please help me to know how to take action against such activity.

Tanishq

July 13, 2015

I have 7 showroom and i know why they are putting vat if anybody wnt to know message me

vic

July 24, 2015

some small issue with VAT
i’ve purchased a shirt and paid VAT 5% on it
i tried it at home ,it didnt fit
so i went to the mall again and exchanged it for another shirt on which i again had paid extra VAT of 5%
i want to know is the procedure is correct,
since i’ve paid VAT 2 times for only 1 product

yogendra Khare

August 1, 2015

This is to bring to kind notice that this online shopping site eezeecart is a Non reliable site, this can be seen on google search with so many complaints registered, providing inferior quality of material and charging more to customer, Not supplying all the combo items deleting some items and giving docket number of courier & playing game between courier services & customer. Basically this site is not providing any vat bill nor any delivery report of products to us & their is no M.R.P. on product delivered. Provision of vat bill is mandatory when you are selling any goods. This site avoids COD because they want to fool people. I did made lot of followup for my product via telephone & email but did not received any positive results just assurance that your problem is on top priority. SALES TAX DEPARTMENT MUST BE SERIOUS ABOUT THIS AS THERE IS NO BILL RAISED BY SELLER FOR GOODS SUPPLIED ONLINE ‘

siddhant Garg

August 2, 2015

includes the VAT in MRP. why charge additional VAT after discount.
If there is provision in VAT rule/Act
pleases share the rule/act.
My Num. 9690325952
[email protected]

ravi shanakr

August 11, 2015

CHARGING OF VAT AFTER DISCOUNT ON A PRICED ARTICLE CONTAINING THE NOTE INCLUSIVE OF TAXES IS NOTHING BUT AN ORGANISED CRIME AGAINST THE CONSUMER BY LURING HIM TO A PERCENTAGE OF DISCOUNT BUT NOT ACTUALLY GIVING IT. THIS IS CHEATING AND AT LEAST THE ETO ( EXCISE AND TAXATION OFFICER) AND SHO (STATION HOUSE OFFICER) OF AREA SHOULD COME FORWARD AND LODGE A COMPLAINT AGAINST ORGANISED CRIME FOR CHEATING . ALL CALCULATIONS BY ADMIN ARE EYE WASH , I HOPE I HAVE CONVEYED WHAT ACTUALLY IS HAPPENING .

ravi shanakr

August 11, 2015

THIS IS CHEATING NOTHING ELSE

Imtiaz

September 7, 2015

What prosecution should I take while print MRP on product or product packing?

Jayesh

September 24, 2015

Sir
I need information about that is VAT add on MRP

gnanasekar

October 4, 2015

Dear sir
The chemical product HCl MRP Rs 1300 this rate including vat 5% . how is find out the specific product rate and vat amount. Please help me sir.

ELAKKIYA

October 10, 2015

retail selling price=1179.50
vat = 14.5%

how to calculate without vat amount.

Pradeep

October 19, 2015

Hi Admin / Anyone,

I would like to know, whether Brand Factory / Central / Life Style/ Pantaloon / Factory Outlet (or) shopping mall charging On Vat 5.5 (discounted Item) in correct manner / misleading the people.

Can any one help me (or) give clarification on my question.

1. MRP Prices Showing on shirt – 549.00 (Inclusive off All taxes)

2. It is discounted item ( 5.5 Vat Extra) charging for all the malls/ stores (Brand Factory / Pantaloon / Central. (or) All Factory Outlets).

I bought a shirt MRP Price is 549.00 (Brand Factory on 18-Oct-2015 @ Bangalore).

3. MRP Price – 549.00 (MRP Inclusive of All kind of taxes)
Less Discount – 130. 95 (23.85% Discount@MRP)
Net price – 418. 05
Vat 5.5 Extra – 22.99 (Vat 5.5@ 418.05 On discounted price).

Total Bill Paid – 441.04 (Retailer). (If I calculate Total Bill Paid 441.04 + 130.95 (discount given store) = 571.99 (Total price exceeding MRP Price (Actual MRP – 549.00)

Now my Question / Concern is

My Shirt MRP price is – 549.00
Now As per my bill – 441.04 (Bill Showing 418.05 (Discount price on [email protected]) + [email protected] (22.99)) + 130.95 (Actual Discount 23.85 = (441.04 + 130.95 = 571.99 )

Total Amount Calculation Showing on the bill – 571.99 ( It is exceeding the MRP Price) .

I would like to know the advise from the experts / clarity on all the shopping mall’s/ factory outlet are doing the right thing to collect the VAT 5.5 is correct. if you shown on bill it is exceeding the MRP Price.

Note: As per my knowledge (it is not exceed’s MRP Price).

Please help me to understand the VAT Concept exactly.

Email: [email protected]
Cell: 91+ 9916455727.

VARUN

October 19, 2015

DEAR RAVI SHANKAR , you might have used 2 very good full forms of authorities , but it appears your knowledge is limited to these full forms itself. Even the admin is wrong in calculations. I myself generate retail bills , and know correct calculation.
MRP always includes Vat. But a retailer can charge you vat if and only if he is billing you amount less than MRP (ie. discount). If you are being charged full MRP , then VAT cannot be charged separately.
you people need to understand the reason. Every retailer has to pay the govt the Vat of any billing to any customer , irrespective of discount. Now if retailer is giving discount he has full legal right to charge you VAT , as his margins can no more accomodate the expense of tax that he still has to pay the Govt. Still the total amount being charged cannot exceed MRP.
Now , calculation is: MRP – % , THEN +VAT
Eg. MRP 100 , discount 40 % , vat 5 % then ,
100-40 % = 60
5% of 60 = 3
net amount payable = Rs 63

Kannan

December 6, 2015

The MRP cannot be exceeded in any way as it is inclusive of all taxes.
If any shop is charging more than MRP, they may be sued(Not an easy job – Jago grahak Jago is name sake).

kalaiselvan

December 27, 2015

i need for vat caluculation

pradeep goyal

December 31, 2015

Sir when m r p means incisive of all taxes then how you can ‘re charge vat on discount once it has been already included once a product we are buying in discount that case why to pay tax on it

Anonymous

February 8, 2016

Guys, there seems to be a misconception here. Let me explain the process. If an article has MRP Rs 1000. It includes the purchase cost + margin + VAT. Now, it means approx tax is Rs 110 (@12.5%). When these stores offer discount of say 50%. They will charge the VAT of Rs 110 and apply the 50% discount only on their part of money (ie 1000-110 = 890). Your bill will be (890*50%) + 110 = Rs 545 – when you are actually expecting it to be 500, with simple calculation of 1000 * 50%. I am not sure if this is legal. Bigger question is, do these stores pay the complete 110 to govt or show the sale to be 545 and @12.5% calculate the tax to be Rs 60.55 and pocket the rest.

Rahul Bhutoria

February 25, 2016

Dear Admin,

I totally disagree with the calculation shown by you. You should be aware that MRP always includes Taxes.

Also, there is nowhere mentioned that the taxes will be levied extra. That discounted portion itself includes the taxes part and the goods should actually be delivered to the customers @Rs. 500 as per example above

ramakrishna bodapati

April 3, 2016

Dear sir , please clarify me ,,,,, 14% VAT is to be applied on 40% of total bill, meaning effective service tax is 5.6% of total bill only if you dine in an AC restaurant.
But restaurants are charging 5.6 % service for 100% bill amount plus charging as well as 100% VAT on that.
if we want to complaint to govt authorities , what is the way

Sreejith

April 7, 2016

Dear Varun

Many thanks for explaining the way retailers calculate the tax. However, the whole debate is that these calculations are wrong. I do agree that retailers has to pay taxes for their product irrespective of discount offered but in any case, the end price to the customer should not exceed the MRP mentioned on the product.

Tax component is inbuilt in the MRP, and that’s the maximum tax a retailer can charnge. See the example

MRP – Rs.100
Tax – 10%
Discount – 50% on MRP

Maximum tax applicable is Rs. 100*10/110 = Rs. 9.09
Discounted MRP of the Product to the Customer @50% = Rs. 100* 50% = Rs.50
Tax already included in the discounted Price= Rs.50*10/110= Rs.4.55
Balance tax to be added in invoice = Rs.9.09- Rs.4.55 =Rs. 4.54
Final invoice to the customer = Rs. 50+ Rs. 4.54 = Rs. 54.54

This can be alternatively calculated as follows.
Maximum tax applicable is Rs. 100*10/110 = Rs. 9.09
Selling Price of the Product Before Tax = Rs 100- Rs, 9.09 = Rs. 90.91
Discounted price @ 50% discount before Tax = Rs. 90.91* 50%= Rs 45.45
Final Invoice to the customer = Rs.45.45+Rs.9.09 = Rs.54.54

But all retailers charge the maximum tax again on the discounted MRP as Rs. 50+ Rs.9.09 = Rs. 59.09

Again there are practices such as buy 1 and get 1 free. There also, retailer bill 2 products and show one products value as discount. Then charge the maximum tax of the free product on the MRP of the billed product.

I know that I am getting cheated but don’t argue in the counter on the following grounds.

– There are other customers waiting.
– Counter boys/girls wont understand this. (That is the reason they are counter boys/girls)
– The anger and frustration affects my health badly and I will have to pay more for it than the discount I forgo.

So go as the first customer when the shop opens and meet the shop manager and sort it out if your really care about the money.

Basant

April 9, 2016

Will all these problems and calculations be solved, if the seller mentions the price he paid for the product before selling it?

sayantan mukherjee

April 9, 2016

if I am buying a Levi’s jeans from say bigbazar…..why should I b paying vat…..value added tax……what extra value does bigbazar adds to an already finished product….this whole thing of charging vat is baseless….

Anonymous

June 20, 2016

Is it mandatory to follow this of charging vat on discounted value ..as in so retailers are charging & some are not?

Neeraj Sahu

June 29, 2016

Hello Sir,

I Purchased a T-Shirt from Big Bazaar which having offer of 30% and detail as below:

MRP: 299/- (including all tax.)

Detail Printed in Bill:

Disc: 89.70 (ie 30% of MRP 299)
Base Amount: 209.30 (ie 299-89.70 , MRP-DISC)
VAT C AOT (4%): 8.37 (ie 4% of BASE AMT)
VAT B AOT (1%): 2.09 (ie 1% of BASE AMT)
Net Amount: 219.76 (ie 209.30+8.37+2.09)

So Finally i paid 219.76 for this but if a add the paid amount and Discount Amount (ie 219.76+89.70) is 309.46.

So this Amount is Higher than MRP so is this wrong. Should i claim for this difference amount because i purchase multiple clothes in same bill and all having same addition of tax.

Naveen

June 29, 2016

Hi this is naveen I had purchased one shirt from retail store which Mrp is 1999 and mentioned in the price tag including of all taxes. which means they are collecting the tax on it . Is it correct ?
Then the same product coming with discount of 50%, should charge Rs.1000/- this is also including of taxes which they mentioned on the price tag carries Rs.1999/- but instead of this if they are collecting extra tax on after discount means what about which price tag carries the message says including of tax . Is itcorrect for govt or not. Pls clarify….

Abhigyan Misra

July 3, 2016

I had a similar experience at adidas and shoppers stop. What is the correct way to approach the authorities for similar issue. Any ideas?

Vishal Agarwal

July 7, 2016

The examples you all are considering is of 50% which is not able to show the fraud. Take the example of 20%. If the MRP is 100 and VAT is 5% it means 100 include VAT of 4.76. Now 50% discount means (100-4.76) *80% =76.19 and the billing amount should be 76.19 + 4.76 = 80.95. But shoppers stop is charging 100 less discount of 20% = 80, then VAT of 5% on 80 = 4, sum of both 80+4 = 84 which is more than 80.95. They are doing this with all the customers VAT should be calculated on discount price not on discounted price.

Raju Sarma

July 14, 2016

The same thing happened to me at Pantaloons,quoted discount @30%, when i approached for payment,i was billed for additional VAT on the price after discount.When i asked they told that it has been mentioned in the flag as “VAT extra”. GOOD .But is this justified.So far as it is known MRP is inclusive of all taxes.than how can they charge a tax twice as no additional value has been added to the product at this point.

Deep

August 7, 2016

I also faced the similar problem. The only issue is they write MRP inclusive of all taxes (which includes VAT), hence even after discount VAT cannot be charged.

Therfore, it is a complete fraud.

Anonymous

September 19, 2016

1000 X 12.5 vat = 1125/- iNCLUSIVE – 11.11% __ 1000/-
sO 1000 x 13.5% = 1135/- sO iNCLUSIVE WHAT DO — 1000/-

Dilip gupta

September 22, 2016

Restaurant charge more then mrp on cold rinks saying service charge n cooling charge. I have also seen in one restaurant writen on board ( .ALL PACKAGING AND COMMADIT’S ITEM CONSUME IN OUR PRIMES WILL CHARGE EXTRA ) is this legal for customer to pay more then mrp

R M P chaudhary

January 7, 2017

Dear admin
I purchase a cloths having MRP Rs. 2000. They have offered discount of 20%. Please prepare a correct bill for this item indicating the VAT amount amount, offered prize and total amount which i have to pay. in the following fields:
MRP:
Actual price: VAt:
Discount:
Total price to be paid after discount including VAT:,

SHISHIR VISHWAKARMA

February 12, 2017

Dear Admin,
Either you are not aware of the fact how items are sold or you are trying to bluff others. MRP (inclusive of all taxes) and MRP excluding taxes are 2 different stories.
When they are charging 100 bucks for MRP that simply means it consists of taxes. 50% means 50 and no extra tax to be included. If tax is added that simply is bluffing/cheating customers. Delhi and Chandigargh district consumer court already ruled out some companies for doing so.

Rajat

February 26, 2017

Mrp (maximum retail price) is always inclucive of all taxes. If a shop offers discount than that amount is now revised mrp so vat should not be charged on top of that…

Girish Jagtap

March 25, 2017

I am a CA practicing in VAT. MRP if inclusive of all taxes which is mostly the case, we have to see the total price paid by consumer after discount on MRP and including VAT. If such price is less than MRP as mentioned on tag of product, it is perfectly with VAT law and can not be termed as unfair trade practices. Also displaying discounts like 50% on MRP would in my opinion not fall in definition of unfair trade practices, as it is a consumer who do not understand it’s legal meaning. And consumer’s lack of understanding can not be reason for penalizing the trader.

Rajababu

April 14, 2017

I have Purchased a Book from A Shop. ..He offers 15% Discount nd Other Shop offers 30%….On this behalf. ..Can we go Consumer Forum.I think 1st Shop Cheated me….1st Shop Says it is his authority to how much he Offers Discount. ..

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