The Confederation of All India Traders (CAIT) has asked the Centre to make specific rules and regulations for the direct selling industry in the country.
In a communication sent to Union Finance Minister Arun Jaitley on Thursday, the traders body also said there is mass scale of tax avoidance in direct selling business. Therefore, a policy needs to be framed to bring direct sellers under the tax net.
CAIT National President B C Bhartia and Secretary General Praveen Khandelwal, in communication sent to Jaitley, said goods sold by such companies to its members or franchisees are taxed at origin stage only. After that the said goods travel through channels but neither the tax is charged nor any sale statement is filed with the tax authorities. The current value-added tax (VAT) system is a destination-based