Wednesday, August 20, 2014
Have you ever purchased items from SRS on discount sales?
A copy of the complaint on illegal charging of VAT on discount sales by SRS Parivar
SRS Value Bazaar (a unit of SRS Ltd.)
SRS Multiplex City Centre,
Sector-12, Faridabad (NCR Delhi)-121007
Sub: Illegal charging of VAT on purchase of items (Peter England) being sold under discount sales.
I had a chance to visit SRS Multiplex City Centre, Faridabad on 18/08/2014 at an outlet offering Peter England Garments. It was glad to see 50% discount on MRP being offered to the customers. I had purchased a shirt whose MRP was Rs. 999.00 and the discounted price offer 50% discount becomes Rs. 499.50. It was surprised that the outlet charged an amount of Rs. 26.22 on the sale price of Rs. 499.50. Since the price of Rs. 499.50 already includes a VAT at Rs. 24.92, the additional charging of Rs. 26.22 becomes illegal. The fact was brought to the notice of the shop owner who preferred to charge the VAT despite stating by me that it is illegal but he mentioned that this is a company policy.
The MRP of Rs. 999.00 as tagged on the shirt as per provision of Sales Tax Authority is having Rs. 949.16 as basic price and Rs. 49.84 as VAT. 50% of discount which has been offered on Rs. 999.00 makes basic price as Rs. 474.58 and Rs. 24.92 as VAT. The charging of any additional VAT which in the present case is Rs. 26.22 has been charged illegal. Either the VAT is inclusive in the price or if at all it was to be charged should be on the basic selling price which in the instant case was Rs. 474.58. The additional VAT charged illegally need to be refunded back
Since the person at the counter preferred to charge illegal VAT despite protest, the amount may please be refunded at my residential address within next 72 Hours of this mail failing which I shall have no other option but to report the matter to the concerned authorities of Government of India as well as Government of Haryana besides taking legal remedies at your risk and cost. A confirmation to this mail may be acknowledged with the proposed course of action.
A copy of invoice No. T17/00071924 dtd 18/08/2014 along with item tag is attached herewith.