Rs 3.15 VAT on discounted item costs Lifestyle store dear

Akash Ghai

Tribune News Service

Mohali, January 20

Charging Rs 3.15 as value added tax (VAT) on a discounted item has cost dear to Lifestyle Store. 

The District Consumer Disputes Redressal Forum has penalised the store management for unfair trade practice and directed it to refund the amount charged as extra tax with interest, along with Rs 4,000 as compensation and cost of litigation, to the complainant. 

In his complaint to the forum, Inderjit Singh, a resident of Hoshiarpur, had stated that he had purchased a product with Rs 90 MRP on 30 per cent discount from the store at the North Country Mall on the Kharar road. After the said discount, the cost of the product turned out to be Rs 63 but the store management charged him Rs 66.15 for the same after adding Rs 3.15 as VAT in the bill.

According to the complainant, the charging of VAT was an unfair trade practice because the MRP of the product he bought was inclusive of all taxes. 

On the other hand, the opposite party (OP) termed the complaint as false, frivolous and vexatious and claimed that they had clearly mentioned words ‘Taxes/VAT extra’ in its all advertisements and marketing material. Its copies were displayed at various places inside the store.  The OP also claimed that the total cash collected from the complainant was less than the product’s MRP mentioned on the price tag and they (OP) had not charged any amount in excess of the MRP.