Professional
907 Points
Joined March 2008
Mr.Prateek,
It depends on the VAT Act and Rules. For eg, in Karnataka for Pharmacetical Dealers, dept has give provision to Pay Tax on MRP(A separate return has to be filled Form VAT 105) or to collect tax on actual price(regular vat return Form VAT 100).
As per the above example given, it is falling under regular VAT Scenario. Hence, VAT needs to be calculated on Rs. 600/- only.
Also others comments are welcome.
with regards,
Subramanya