Tajinder singh 06 May 2016

Mrp and vat

Kindly cleqr my query can vat be charged over and above mrp ? If the price tag shows mrp is inclusive of all taxes, its clear all taxes are included and no tax can not be charged extra , But if the price tag shows just Mrp *** not displayed inclusive of all taxes or exclusive of taxes then can vat be charged extra ? As MRP is always inclusive of all taxes

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Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 07 May 2016

VAT as the name says is tax on the value added. Eg: Manufacturer sells to distributor @rs.100 10% payable. Tax paid by Manufacturer =Rs.10.
Distributor sells @Rs.200 then here the value added is Rs.200-100= Rs.100. Tax payable =rs.200*10% =20 - 10(already paid by manufacturer) total tax payable by distributor = Rs. 10.
M.R.P stands for maximum retail price. This is the final price and no sale can be made over and above this rate. M.R.P is inclusive of all costs and every tax applicable.