The SAS Nagar consumer disputes redressal forum has directed a Phase-7 outlet to pay a compensation of Rs 10,000 to a Sector 59 resident for charging extra value added tax (VAT) of Rs 39 on a discounted product.
The forum also directed the outlet to refund Rs 39 VAT to the complainant.
In his complaint to the forum, Sorabh Sharma said he purchased a T-shirt from Planet Fashion, Madura Fashion and Lifestyle, Phase 7, SAS Nagar, on August 14, 2015, during a flat 50% sale on the maximum retail price (MRP). The MRP of the T-shirt was Rs 1,299 inclusive of all taxes and the complainant was charged Rs 689 after discount. The complainant objected to the extra VAT at 5.5% plus 10% on the value of extra collected VAT. He said VAT had already been added to the cost and charging tax on tax was illegal.
The outlet and its parent concern Planet Fashion, Bengaluru, were proceeded ex parte.
The forum presided by Madhu P Singh held: “No one can charge more than the MRP and it includes all taxes such as VAT. When the MRP is including all taxes, VAT/ other taxes cannot be charged separately.”