Woodland — why VAT??

Address:

Indore, Madhya Pradesh

I purchased shoe from woodland store on 22 feb 2015 in Indore. MRP is inclusive of all taxes 3395. After 50% discount it should be: MRP - INR 3395 DISCOUNT - 50% OFFER PRICE - INR 1695 (on http://woodlandworldwide.com). They (on store) charged 1695 + plus VAT 220!!! WHY?? Price should be same, isn't it? I am planning to launch complaint on consumer forum, but wanted to have a clarification from woodland first. Thanks Rachit