Taxation in MLM Business

No doubt, MLM industry constitutes big contribution to revenue collection. VAT, Custom Duty, TDS (Tax Deducted at Source), and income tax are some of the taxes levied to the industry. A mechanism within MLM business system is a key to compulsion of VAT; i.e., every distributor gets certain points in every purchase; commission is paid based on such points. Hence, the company can never hide VAT bill or Tax Invoice. Eventually, it helps regulation of VAT and other taxes in every transaction, resulting big collection of national revenue.