Mrp in vat

sir/mam

I am running SSI unit in karnataka, manufacturering and selling  goods in chain way,

i.e. manufacturer---distrubitor---dealer---ratailer---customer(end user)

And descripttion on packing box as per wt. & measurement rule,

Now i want to know, what will be the MRP allowed,

we are selling goods @ 200/- + VAT tax and

retailer wants MRP of 700/- and above,

as we know every where sale & discounts are going on daily,

so end user wants some discounts,

THis can be possible to put MRP as 700/- and above with discount reason or without any reason.

please reply

thanks

manoj Godhani