Grahakjago (S.K.Virmani)©

An article titled " Is "Ritu Wears" adapting to Ethical Business Practices? probably "No". appeared in this blog on 09/02/2014 and another article titled Why VAT being charged by Aditya Birla Nuvo on discounted MRP when MRP is inclusive of all taxes? . on 10/02/2014. This article pertains to the illegal charging of VAT by the many traders including Ritu Wears including Park Avenue, Aditya Birla etc. in a case where the traders are giving discount as %age of MRP. Since the MRP is always inclusive of VAT and no additional amount is chargeable, the discounted prices are also MRP and are inclusive of VAT. Any additional charging of VAT is not chargeable and it is felt that one of the VAT is being pocketed by the traders. In that scenario there is a possibility of tax evasion. The issue was also brought to the notice of the Department of Consumer Affairs, Govt. of India. Department of Consumer Affairs, Govt. of India have requested State Controllers of Legal Metr...

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 me...