Discount on readymade garments.
gilgonde
(Querist) 18 January 2013
This query is : Resolved
During the year, there are two three seasons wherein branded readymade garments are available with an offer of discount. These discount are ranging upto 60 to 70 percent of the MRP. While buying under these schemes, it was observed that the outlets of these branded garments are applying the discount on the MRP and then they add the applicable local VAT. These seems to be wrong practice adopted since, the MRP itself is including of VAT. This indirectly reduces the percentage of discount offered and indirectly cheating to the buyer. Is the understanding correct and what are the remedies available.
Raj Kumar Makkad
(Expert) 18 January 2013
MRP never includes taxes hence the VAT on the deducted price is to be charged separately.
