I understand that the Goverment of Karnataka - Commercial Taxes Department had announced following modification in all leading newspapers of today :
"Rate of tax on sale of medicinal and pharmaceutical preparations by wholesalers and retailers out of stock which has already suffered tax at 4%, continued at 4% for a period of 3 months from 1.4.2010 to 30.6.2010."
In view of the above, there is no need for us to reimburse any stockist the 1% difference on VAT on their stock holding as on 31st march 2010.