Discussing issues pertaining to Legal Metrology (MRP, Under weight etc.)
Legal Metrology issues pertaining to MRP, under weight etc. - Shri S.K.Virmani associated with Jago Grahak Jago movement. Discussion on Sahara Samay
Posts
Illegal charging of VAT on discounted prices by brands/retailors
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...
Is Ritu Wears adapting to ethical business Practices? probably "No".
Is "Ritu Wears" adapting to Ethical Business Practices? probably "No". This is a snap taken at "Ritu Wears" Faridabad who have announced off season sale discounts. A discount of 30% to 60% is being offered. The MRP of products is also displayed and MRP is a price inclusive of all taxes, VAT etc. Now when the discount on MRP is offered, the discounted price becomes MRP implying that the discounted price is also inclusive of taxes, VAT etc. As can be seen that Ritu Wears after discount is also charging VAT extra. The charging of extra VAT is an unfair trade practices as the price after charging VAT becomes expensive to the extent of VAT which in most of the items is 12.5%. This means the price where the discount has been displayed as 50% makes effective discount to be 43.25% instead of 50% which is unfair trade practices as well as misleading selling. Let me take another example. Say the company has announced 10% discount in the off sea...