Unethical trade practices- Consumers berae!!!!
I have received three complaints from consumers in Delhi and Chandigarh against Aditya Birla for unethical charging of VAT despite the fact that MRP is inclusive of all charges incl. VAT. I am giving below the details for the benefit of the readers/consumers.
The show room has displayed "MRP inclusive of all taxes" and it is also displayed off-season discount as 30%. Now when the customer has reached the counter for billing and payment, the trader charged MRP-30% plus 12.5% as VAT. The same is illustrated as:
1. MRP------------- Rs. 1,000.00
2. Discount 30%. Rs. 300.00
3. Net Price : Rs. 700.00
4. VAT @12.5% : Rs. 87.50
5. Total Rs. 787.50
Now since the prices are inclusive of sales tax, the price after discount of 30% is also inclusive of sales tax and charging of additional VAT becomes unethical and this is unethical trade practice. The customer noticed the same only when he came back to home. I would request all perspective consumers to kindly check the same while doing shopping. I would also be seeking details from those consumers who have already been charged such unethical amounts so as to take action against unethical trade practice. more
The show room has displayed "MRP inclusive of all taxes" and it is also displayed off-season discount as 30%. Now when the customer has reached the counter for billing and payment, the trader charged MRP-30% plus 12.5% as VAT. The same is illustrated as:
1. MRP------------- Rs. 1,000.00
2. Discount 30%. Rs. 300.00
3. Net Price : Rs. 700.00
4. VAT @12.5% : Rs. 87.50
5. Total Rs. 787.50
Now since the prices are inclusive of sales tax, the price after discount of 30% is also inclusive of sales tax and charging of additional VAT becomes unethical and this is unethical trade practice. The customer noticed the same only when he came back to home. I would request all perspective consumers to kindly check the same while doing shopping. I would also be seeking details from those consumers who have already been charged such unethical amounts so as to take action against unethical trade practice. more
Viewed by 64
Dear Mr. Asif, I differ from your views as the net MRP is the net prices which is inclusive of VAT. Therefore the discount on MRP makes discounted price as inclusive of VAT. Ideally it should be discount should be calculated on MRP minus VAT and then add VAT on the discounted prices which would make same calculation as MRP-Discount inclusive of VAT and that is only the way.There is no question of adding VAT on the discounted price of MRP. more
Feb 08
This is normal practice for most kind of discounts. However it is responsibility of the sales person to make it clear that discount is not on the VAT. I made such purchase from LifeStyle and I was made aware that VAT will be applied after discounted price and the same was mentioned in my bill. Therefore as far the bill has correct information, this is not unethical practice because the amount of VAT mentioned on bill is going into Taxes. more
Feb 07
