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...