Amway India sells its products to its distributors and they in turn have to find retail customers. That is the original idea. But these retail customers receive no receipt for their products purchased from the distributors. The distrubutors who claim discount from the purchase from Amway India try to sell these products to the retail customers without any receipt. That is how the consumer has no right to complain or no way to approach the consumer court in case he faces problem with the products.
Every sale must be recorded and must be supported by a receipt. But the Amway distributors do not issue any receipt thus evading paying sales tax to the government. If the Amway India's claim of achieving sales turnover of Rs. 900 crore is to be believed, the Government of India is not getting any revenue from its retail sales. This is one area, the Government of India should concentrate.
So is the case with the numerous fraud companies like Herbalife, Forever Living Products, Hindustan Unilever Network and other members of Indian Direct Selling Association.
For instance, GoldQuest International's Independent Representatives claimed to have paid Income Tax on their income. But they did not pay sales tax on the sales of gold and silver coins and other articles. That it is one of the problems they are facing now. On the other hand, nobody should sell gold coins except the Government of India. Now, the ICICI Bank which imported gold coins is now facing tax problems with the authorities.
It is high time, the tax authorities of the respective State Governments all over India concentrated on the retail sales of Amway India also to penalise it on that front.