Hi,
I have purchased a Sofa through a discounted sale from Fabfurnish. They provided a coupon of 35% discount which I utilized to buy the sofa. The price of the Sofa was Rs.76,999 inclusive of all taxes. They provided a 35% discount, which should actually be 26,950. The net amount should have been Rs. 50,049. However, they charged me Rs.54,802, additional amount of Rs. 4,753. Since Rs.76999 already included taxes, how can they charge the tax again after providing the discount. I raised this issue with their customer service. They told the discounted products will be taxed additionally! Infact their website clearly says below:
"For products that are sold at the website selling price or with an additional discount below 20%, VAT is already included in the price and no VAT will be separately collected. For products where additional discounts are 20% or beyond, VAT will be charged additionally as per the product category norms. However, FabFurnish.com has currently decided to cap the additional VAT collected from customers to 7.5% and will fund the balance tax amount directly. Additional discount includes any kind of coupon applied for the transaction or any cart level discounts provided by FabFurnish.com."
I am amused how can there be a concept of additonal VAT!! I understand the VAT is charged based on the selling price of the product. Since the discounted selling price of Rs.50,049 was from a product price which included all taxes, how can they charge additional VAT for providing discounts? In case you don't avail discount coupons and purchase the product at the price of Rs.76,999, no additonal tax is added except the delivery charges.
I have attached copies of their Showroom order copy, example of online order copy without discounts and retail invoice received at the time of deliver for your reference. I am not able to attach example of online order copy with discount since only 3 attachments have been allowed in this website. All these invoices show different amounts as VAT. Kindly let me know how can I go forward since I am not getting any resolution from Fabfurnish regarding this.
Regards
Yogi
