On Sunday 31 May 2009, Rony wrote:
jtd wrote:
So zero rental = zero talk time?. No. It means you pay rental X and get free talk time = X. And you get a tax charge for X.
The tax componet is seperate.
My bill has many components like sms usage, surfing etc and on the final amount after tax is added, I get the discount for my local and std calls.
So SMS = X Surfing = Y Local call = Z Discount on Local call z Actual charge on Local call = Z-z Tax = 10 % Total =1.1 * ( X + Y + Z-z ) Not Taxable amount = 1.1 * ( X + Y + Z ) Less discount = (1.1 * ( X + Y + Z )) -z
What I get is X + Y + Z + R = T (Total usage + Monthly Rentals ) Tax = 12% of T. New total = T + Tax = TT Final amount F = TT - Free Talktime Discount
It's not correct. They should be doing T- Free Talktime Discount. Then charging tax. They are charging you tax on the discounted portion.
I had a spat with HSBC (one of the worst disorganisations i have ever come across in my entire life anywhere in the world - and i have been to some real hell holes), on precisely this issue, where they tried to charge me late payment charges inspite of payment being made on time, then reversing the charge, but not the tax because they had paid the tax. Told them that they have to claim a refund, cause they cannot charge me tax on an amount that i have never paid. It is ILLEGAL.
In your case charging the late fee itself was wrong so they wrongly paid the tax and that's their problem. You can't be charged for it.
True. But the point is not about a wrong fee, rather about the illogical charging of tax on charges not applicable (or waived). There was a court case many aeons ago against the excise department where the excise department would not allow a discount (which was based on volumes), and would compute tax on the maximum price. Afair the excise dept lost.
-- Regards,
Rony.
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