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Query regarding mrp

(Querist) 10 November 2011 This query is : Resolved 
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.
Advocate. Arunagiri (Expert) 10 November 2011
They can not sell more than the MRP price.
Piyush Vaishnava (Expert) 10 November 2011
no, its cant be charged on mrp
Shailesh Kr. Shah (Expert) 10 November 2011
according to provisions of legal metrology act, goods shall not sell above mrp.
prabhakar singh (Expert) 11 November 2011
\\and it is inclusive of all taxes//
So nothing above it can be charged,
Ankit (Querist) 11 November 2011
I agree by all of of 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?

Shailesh Kr. Shah (Expert) 12 November 2011
In my opinion, Company has not violated in any law.
prabhakar singh (Expert) 12 November 2011
Perusing your next query formed with three questions i find whosoever is claiming the action of the company wrong is either void with concept of MRP or trying toplay smart.

As goods have not been sold on MRP neither question 1 or 2 arises nor action 3 may lie.

See what others say.More particularly VAT tax experts.
C. P. CHUGH (Expert) 13 November 2011
I would like to advise on Third question first. So far as the goods suppled are not defective or to the mark and are of standard as mentioned in the invoice, the case does not fall within the preview of consumer protection Act. Now the First and Second Question, Since there was no committment in writing about the discout on MRP to be allowed, the company cannot be said to have overcharged. So far as the method of raising invoice is concerned, the method adopted by Company is very much with in the parameters of accouting standards. He is rightly calculated the basic price after allowing the verbally promised discout, charging vat applicable on basic price and charging Freight, Cooliage and carriage in addition to sale price. Only thing now to be checked is whether such levies are authorised. Pls see the packing and read carfully. There could be a mention of "Freight, Carriage, Cooliage or installations Extra" in very small letters. If it so, the company has not voilated any law and you have no reason to complain, however, otherwise you can challange the levy and ask the company to refund of such extra amount charged.

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