Whether Value Added Tax(VAT) can be charged on the Maximum Retail Price(MRP)of the item such as sanitary wear where it has been clearly mentioned on the item cover that the MRP is inclusive of all the taxes.
Ankit (Student) 10 November 2011
Whether Value Added Tax(VAT) can be charged on the Maximum Retail Price(MRP)of the item such as sanitary wear where it has been clearly mentioned on the item cover that the MRP is inclusive of all the taxes.
adv. rajeev ( rajoo ) (practicing advocate) 10 November 2011
It cannot be charged on the Max.RP
sridhar pasumarthy (ADVOCATE) 10 November 2011
Dear Ankit,
When M.R.P. is inclusive of all taxes, no question of any tax either VAT or any else on the MRP.
Ankit (Student) 11 November 2011
I agree by You but I seek advice on the following- A person has purchased sanitary items from a reputed company on the verbal promise by the representative that 34% discount will be allowed on the printed rate. Accordingly 34% was reduced and Vat @12% was added in the final bill, whereas on each and every box of the item it is printed that MRP is inclusive of all the taxes. Further Freight, cooliage and carriage was also charged extra which almost comes to MRP. 1- Can the person seek explanation from the company when MRP is inclusive of all the taxes and why VAT is added after allowing Discount on MRP with all the taxes at first stage and then Vat added on the final Stage? 2- Can the company calculate like this without mentioning the discount percentage and VAT rate percentage 3- Is this a fit case for consume court or not?
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