Going by the link I am totally confused about the issue, am unable to understand what this is all about ? There is absolutely no mention of this anywhere on the net to get any details, I wish you could add some more details...
Multi level marketing means that the products are sold through agents and not retail shops. Am Way is one such company. Also some other companies are selling health products like Aloe Vera, spirulina etc this way. The marketing companies appoint distributors. The distributors appoint further distributors under them and this chain goes on. A distributor gets commission on sale by him and also shares commission earned by other team members in his chain.
Rajasthan Government now wants to regulate such retain selling also. But the distributors are opposing.
I think Amway is one such chain. Am I right sir?
I have already mentioned Amway in my post. Also DXN, Vestige and some other groups market health products and cosmetics through direct marketing. It appears that government loses sales tax in this mode. Hence Rajasthan government is regulating.
G. K. Ajmani Tax consultant http://gkajmani-mystraythoughts.blogspot.com/
In RCM product cost is normal but question mark is on quality. Quality is not able to compete with other market product but its successful MLM company.
