E India CA

Professional Updates for Chartered Accountants


No VAT on items sold at discount: Consumers’ body

2BAF908000000578-3212101-image-m-15_1440627596183NEW DELHI: The National Consumer Disputes Redressal Commission has held that shops selling goods at 40% discount cannot charge VAT or any other duty on the discounted price. It said that the rebate was on the MRP, which includes all taxes and cess as per SECTION 2(d) of Consumer Goods Act.The NCDRC order came last month after state forums had rejected the plea of Woodland franchises in Chandigarh and Delhi that had refused to refund VAT charged to customers onJACKETS sold at ‘flat 40% discount’. The amount in dispute was Rs 119.85, which was the VAT charged on a jacket bought at 40% discount on an MRP of Rs 3,995.

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