Margin for Discount from MRP
In many products in India as we all know there is margin for discount from mrp. Like in medicines a retailer can discount up to 30% same with eye wear or contact lenses.
In cars its like 3%, in clothes 50% in books 40%.
Can we use collective knowledge of all and have this info for all for every industry.
It will be great resource for every circle member.
Lets call it - max discount available for consumer. more
How does this change under GST? more
There is discussion on this again. more
Thanks Mr.Mathur. He is a long time friend of mine and a staunch consumer activist. I am happy that he is here with us. To continue our discussion from where Mr. Mathur has left it, I would like to add that Revised Packed Commodity Rule 2011 notifed has the following provisons: "(m) “retail sale price” means the maximum price at which the commodity in packaged form may be sold to the consumer and the price shall be printed on the package in the manner given below; Section 2 (m) 'Maximum or Max. retail price Rs...../...... inclusive of all taxes or in the form MRP Rs...... / ...... incl., of all taxes after taking into account the fraction of less than fifty paise to be rounded off to the preceding rupee and fraction of above 50 paise and up to 95 paise to the rounded off to fifty paise; more
To clarify Shri Sreekumaran's comments. There is no no rule that notifies MRP to be inclusive of tax on sales, except in the case medicines. At least despite keeping an eagles eye on this issue, I have not come across any such notification. With regard to VAT on discounted MRP, it is acceptable. But what is not acceptable is "not giving the benefit of 'set-off' in consonance with the VAT Scheme". Suppose the MRP is marked up Rs.100/- on a pack, discount is 10%, then the MRP is Rs.90/-, the purchase price of the retailer is Rs.80/-, the retail can charge VAT on (Rs.90 - Rs.80) Rs.10/- which does not pinch the consumer. But it pinches when it is charged on Rs.90/- the discounted MRP (or, the MRP Rs.100/-). more
I know about medical profession, the most corrupt and unethical that it has become. They have a cut for prescribing medicines. They are paid for foreign trips in the name of attending conferences. They, in private hospitals, have targets for bed occupancy. They charge more than the prescribed limits of insurance rates. And, in the name of protecting consumer interests join consumer movement via the political affiliations. more