We are purchsing sandle at MRP. 139/- & he giving discount of 18.5% & charging MVAT @ 12.5%. My question is that VAT will be applicabe on the MRP or not. Because MRP includes all the taxes and above that no price can be added.
20 September 2014
Mr sandeep the querist has asked VAT will be applicable on MRP or Not & he has not asked whether VAT is Included in MRP or Not. hence the answer to his query would be "VAT is applicable on the Billing ( After Discount) & not MRP. Excise Valuations are done on MRP after allowing for the Abetments as per Excise Valuation Rules
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