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What is the impact of VAT on MLM (multilayered marketing)?

April 26, 2017impact Marketing mlm VAT

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What is the impact of VAT on MLM (multilayered marketing)?

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Sales through MLM will also be subject to VAT. So there will be only a stock transfer from one level to the next and VAT will have to be charged at the point of sale to the customer. However, if stock transfer is effected from one State to another, credit will be available in excess of 4 per cent only. If the distribution pattern is different, levy will be at each point of sale.