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Monday, February 10, 2014

Why VAT being charged by Aditya Birla Nuvo on discounted MRP when MRP is inclusive of all taxes?

Why VAT being charged by Aditya Birla Nuvo on discounted MRP when MRP is inclusive of all taxes?

A copy of the e-mail sent to Aditya Birla Nuvo Ltd. on alleged unethical additional charging of VAT on the discounted price as the MRP is supposed to be inclusive of all taxes and any discount offered on MRP also becomes inclusive of VAT/taxes.


"
Dear Sir,

We have been receiving complaints from the consumers who have been shopping at your outlets at Connaught Place, New Delhi and Chandigarh stating that the outlets are charging VAT extra on the discounted prices.

As you would appreciate that the MRP are inclusive of all taxes and VAT and no additional amount of whatsoever nature is chargeable. When the off season discounts have been offered on MRP the discounted prices becomes discounted MRP and in our view no additional amount is chargeable. To explain with illustration if the MRP of any product say is Rs.2,000/- inclusive of all taxes and a sale discount has been mentioned as 50%, the prices as perceived as well as ethically becomes Rs. 1,000/- of inclusive of all taxes. Charging additionally VAT on Rs. 1,000/- becomes unethical/unfair as the price of Rs. 1,000/- includes element of VAT/Taxes etc. You are requested to kindly let us have your opinion so as to issue consumer advisory accordingly. 

We shall be grateful for your feedback by return mail with a request to issue advises to your outlets accordingly under intimation to us. Not getting any response to the mail would substantiate the allegation as unethical business practices.

Best Regards
"

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