VAT charged by the retailers.
Retailers in NCR-D, and the rest of India, are charging VAT on MRP without giving the benefit of "set off" to the consumers. For example, a retailer is selling a packaged commodity with MRP of Rs.100/- and his purchase price is Rs.80/-. The retailer can charge VAT on Rs.100 (or any downward discounted price) minus Rs.80/-, that is Rs.20/- (to which consumer has no objection) on which the VAT can be charged. But, no. The retailer is charging on Rs.100/- to which the consumer should object and agitate.
In Delhi, the VAT Department has advertised a formula for charging VAT without disclosing the purchase price of the retailer but this is not being followed.
I invite views, comments, experiences, and also providing me evidence to this effect at my contact address: email@example.com more
Vat is one if tricky issue , by giving specific example for any commodities , is not a road to think/decide by customers .As it involves lot of techniques/zig zag procedure to compute it confused the customer. Now solutions lies with government efforts/ sincerity to prepare a ready recknor for all types of segments of commodities so is easy for aam admi to understand /purchase without unwanted strain of multiple calculations more
Yes I do agree with Mr. Ganesh Kamat. If taxes are less say 1 or 2 %. There will be better compliance. I can say with my experience I am a small manufacture, I use one petroleum product vat on the same is now 25%. As I do not get and credit from the supplier I have to pay in advance for the consignment. I purchase 3 drums, one month requirement. Current rate is 65.00. I have to arrange 40000.00 + another 10000.00 if I purchase legally. Even to arrange 40000.00 is some time difficult so I ask for with out bill. more
Vat should be charged on the total sale, 1%. Less confusing, Government get more. Tax. & Happy purchasing - selling. more
I have also experienced this. Retailer do affix stickers with hiked price. I had taken the receipt, taken the photo of the sticker and sent the same to the manufacturer for confirming the MRP on the particulate date in Delhi region, and they confirmed the sticker was with hiked price. I wrote to the Secy-CA for action e.g. releasing advertisements in the media warning retailers of such action, but nothing happened. Relating to this there is another issue which I have been raising. On Highways in India, it has been observed, obliterate or delete the MRP and charge much higher prices. For this also I have met the present Secy-CA who asked me to draft a letter to this effect for the Chief Secretaries of the State and I have done this recently. Let us hope some action will be taken. On the first point, I could go to the DForum but I depended on Department of CA to take action instead. I was wrong. more
Dear Mr. Nair, Rules are very clear. No sticker can be pasted on printed MRP irrespective of whatever price increase has taken place. The retailer can be prosecuted on a complaint made to State Controllers of Legal Meteorology. Please try to take cash receipt even though it is difficult to take receipt. You can request softly on one pretext or other. more