Charging VAT on discounted items costs shoe dealers
July, 31st 2015
Charging VAT on discounted item costs city based shop and manufacturer of shoes dear as the consumer forum directed them to pay Rs 10,000 as compensation for deficient services to sector 70 SAS Nagar resident.
Disposing of the complaint filed by Jashan Preet Singh Gill resident of sector 70 SAS Nagar, consumer forum directed Shoppers Stop Elante Mall Chandigarh and Red Tape -- manufacturer of shoes to also pay Rs 7000 as cost of litigation to complainant.
In complaint Gill alleged he had purchased a pair of shoes from Shoppers Stop inLante Mall during sale. He alleged he was charged VAT for pair of shoes with MRP of Rs 3295 after giving flat discount of 40%.
He also alleged that he had paid Rs 300 to become silver member of first citizen scheme floted by the shop to get imitations through sms, emails regarding various offers, special schemes, discounts and season sales but they failed to provide him this service.
Consumer forum presided over by PL Ahuja, held, "Charging VAT on discounted price inspite of mention on tag that MRP is inclusive of all taxes, is against trade practice."
The forum held, "The act of not offering their services of sms alert to complainat inspite being member of the silver member of first citizen scheme and charging VAT on discounted product clearly proves deficieny in service."