Vat
Ankit
(Querist) 11 November 2011
This query is : Resolved
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?
Sankaranarayanan
(Expert) 11 November 2011
why you confused with MRP and all. as simple logic is what the amount you mentioned in your sale invoice net total i mean after dection of discount, you have to pay the tax for the net .
Where are you from?
The marigin of profit if affected by those problem then you have to explain then you explain all with the supplier or dealer or manufacture,
That prob is between you and the supplier of goods to you.
But as for as the tax concern what amount you going to sell, for that you have to collect it and pay to department of commercial tax
R K JAIN
(Expert) 12 November 2011
The supplier can charge the sale price and tax amount. Sale price can be arrived after giving the discount. The seller can not charge other charges in the bill to reach the value at MRP. Otherwise the supplier has to add all expenses in the sale price and then charge the tax. So the supplier is charging more and avoiding the tax. The same can be brought to the notice of the Taxing Authority of the State.
