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Nagarjun senani (Student)     04 October 2013

Sale more than mrp

 I bought a new mobile phone for rs 2400 but the mrp of the phone is 1950.the dealer added a 14.5 percent service tax for a mrp of 2096 and gave me a Bluetooth free which was not billed so is it right in his part??



 3 Replies

Rohan Sumungal (na)     06 October 2013

I think you mean he added VAT at 14.5% NOT service tax. Service tax would not apply to a sale of goods. And the rate of Service Tax is 12.36%.

 

Whether this was right - No. Doesn't appear to be so. The maximum retail price of an article includes all applicable taxes. A sale above Mrp is typically a violation of The Legal Metrology Act.

Nagarjun senani (Student)     06 October 2013

What to do yes you're right it's vat .he gave me bill,what can I do suggest me?

Rohan Sumungal (na)     08 October 2013

Go back and ask him for a refund. He might ask you to return the bluetooth device, which he threw in as a freebie.

 

If he refunds it well and good. If not, go to the jurisdictional police station and ask them to file a case under the applicable Act as well as for cheating under IPC. Serve him with a copy of the complaint, hopefully this should be enough to warrant a refund.


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