Wednesday, 11 November 2009

Paying taxes won't make Amway a legitimate business house

It seems that some people think that paying taxes to the government makes their business legitimate. They are not doing a favour to the country. By paying taxes they are just fulfilling their duty.
Many GoldQuest independent owners openly claimed that they have been paying income tax and their business was legitimate. Once Corporate Frauds Watch filed criminal cases against them and their bosses, they realised that it was a crime. Now a sizable number of them are facing criminal cases.
Now Amway adherents claim that they have been paying taxes to the government whichever country they are in. In fact, I have established earlier that no IBO gives a receipt to any retail customer if he has one. That means he is not paying sales tax to the government.
The question is whether their business model is legal or not. Amway India is trying its best to postpone the trial and also trying to bring undue influence on the bureaucrats and others. Still, there are a number of honest people in India and it is wrong on the part of Amay to think it could buy off everybody.
Now, simply go to Amway India website, which tells that a member could earn Rs. 56, 500 every month if he could enrol 102 members or complete one leg. That itself is a money circulation scheme and it was proved in the Andhra Pradesh High Court. When we are talking of legitimacy of the business, these crooks talk of something else all the time.
The government officer I have referred to in my earlier blog is the project director of rural development in a district in Andhra Pradesh who told me that rural people became cleverer and they do not fall for this type of money circulation schemes.

17 comments:

IBOFB said...

Shyam,
You are wrong on so many levels. You claim you have established that over 3,000,000 IBOs around the world, and hundreds of thousands in India, do not give out receipts? How have you established that exactly?

You claim Amway says you'll make money by recruiting 102 people - how is that exactly? I look at the Amway plan and see you make ZERO by recruiting 102 people.

You claim the example on the Amway page is "one leg", I see an example that has 6 legs.

Please Shyam, learn what you're talking about, you're really getting embarrassing.

dtytrivedi said...

how many times i have to tell u that it was an example. there is no compulsion but i know u will think it in that way other wise ur argument won't sustain.

and could give us figure regarding how much tax goldquest paid

dtytrivedi said...

pls give some thing accurate what u say, the way u said i can also bluff anything.

so i request u tell some more specific with reference.

otherwise it would be like we are discussing in opinionsblogspot.com

dtytrivedi said...

Did u know Shyam and Legal Scan that Amway is also member of Federation of Indian Chambers of Commerce and Industry 'FICCI' which is the largest and oldest apex business organisation in India. And it is one of the main organizations to fund and support many governmental and non-governmental educational institutes.

http://ficci.com/ficci-corporate-members.pdf

well how many other mlm companies u saw are the members of ficci.

dtytrivedi said...

here is the list of
top fmcg companies in india according to their revenues


1. ITC = 23144 crore
2. HLL = 21927.23 crore
3. Amul = 6711 crore
4. Asian paints = 5,042.40 Crore
5. Nestle = 4,472.04 crore
6. Nirma = 3,354.06 crore
7. Godfrey Philips 2,276.21 crore
8. Marico = 2390 crore
9. Britannia = 2200 crore
10. Pidilite 1,912.01 crore
11. Colgate = 1,810.65 crore
12. Cadbury = 1,751.24 crore
13. Dabur = 1375.03 crore
14. Godrej = 1,135.37 crore
15. Amway = 1128 crore
16. Parle agro = 950 crore
17. P&G = 773.03 crore
18. Emami 585.9 crore
19. Henkel = 508.56 crore
20. Nivea 100 crore

dtytrivedi said...

let me know if i went wrong somewhere, legal scan..

Legal Scan said...

It seems IBOFB has closed some parts of his thinking brain. Kindly prove if any single distributor in India gives any receipt on his retail sales if at all he sells them. How can you say Shyam is wrong. Show me one single distributor who is registered with the Sales Tax department to pay sales tax.
Even after looking at the Amway plan you blindly defend that the members make nothing been after recruiting 102 members. Recruitment is followed by product purchase and every distributor must purchase products to be eligible for earning commission that is pitfall. Simply sayint that Shyam is wrong, you are only misleading our readers.
Trivedi, think sharp. Examples are not for the sake of examples. They are to be followed to continue in the business. That is the money circulation scheme and the endless chain.

dtytrivedi said...

legal scan give me some specific details regarding those ones who are following the same structure.

Do u have any idea for what it was meant for?

i have told to shyam 3-4 times but he won't think about it at all.

this was an example that

did u know that it is against code of conduct to force a distributor to to do the business same way as shown in example.

it violates the code of conduct section 8.5 which states

"No Obligation to Purchase: No Distributor shall represent that there is any obligation to purchase products and/or services except for the standard Amway Business Kit, nor shall he/she represent, purposely allow or gain from any representation or implication that benefits may be derived solely from the purchase of AMWAY products or services in conformity with the Amway Sale and Marketing Plan"

so your argument is fundamentally wrong dear.

tell amway what are u saying to me.
And i have been shown that there are many people whose distributorship has been cancelled by promoting in this way.

dtytrivedi said...

legal scan u know the truth such companies mentioned by ur friend shyam is just subjective. it is like as if he what are things told during gossips.

well when it comes to figures regarding tax for amway i have the figure to show u the difference.

let me site this from the survey of ernst and young and idsa survey 2009.

"The tax paid as a share of revenue was at 20% of the overall revenues. The indirect taxes paid by the
IDSA member companies rose sharply by 41.5% primarily on account of increased complexity in
the indirect taxation structure for the direct selling industry."

But when it comes to amway it paid around Rs 300 crore or more than $6 million.

do u have any idea how much big that is.

let tell u according to survey ernst & young and idsa "over Rs. 3,700 million paid as taxes to the Government exchequer by IDSA member
companies alone"

And Amway paid around whopping Rs 3000 million which is about 80% of the tax paid by idsa companies or 9% of the direct selling industry in india.

Does ur friend shyam has concrete information, he just speaks subjectively i would request him to show some figures.

As far is my case concerned here is the source of the information

http://www.financialexpress.com/news/amway-india-plans-to-triple-its-baddi-plant-capacity/463868/

dtytrivedi said...

And not forget, it gave 30% of its revenue as direct commisions to the distributors.

http://himachal.us/2009/09/03/amway-indias-himachal-production-facility-to-tripple-capacity-by-end-of-2009/15458/news/ravinder

dtytrivedi said...

legal scan hear this this may satisfy ur answer.

here is what in what amagram magazine, issue 60 page 28 of 36

As per Income Tax Act, AIE (Amway India Enterprises) deducts TDS (Tax Deduction at source) on all Discounts / Commissions Credited / paid to ABOs.

With effect from September – 2007 based on very recent amendments to the Income Tax Act 1961, some changes have been incorporated to the requirements of issuing TDS Certificates and claim thereof.
Quoting PAN No. is MANDATORY for ABO’s whose income has crossed the threshold limit of Rs. 2500/= in a
financial year. (April to March)
AIE has been filing a quarterly return (Ending 30th Jun, 30th Sept, 31st Dec & 31St Mar.) to prescribed Income Tax Authority providing them details of TDS deducted of all the ABO’s along with PAN No & address, where available.

Now onwards, Quarterly Returns will NOT be ACCEPTED by the Income Tax Authorities unless the PAN No &
addresses of ABO’s are provided in the returns.

so this means that pan number is compulsory for those who are earning more than Rs 2500.

let me know if u want the source, i will forward u copy at ur address !!!!

For our other friends who don't know what is PAN number.

Permanent Account Number (PAN) is a national identification number, issued to all taxpayers of India whose income is taxable. This number is issued by the Indian Income Tax Department under the auspices of the Central Board for Direct Taxes (CBDT).
This number is compulsory for many activities such as opening a bank account, getting a phone line (discontinued), receiving salary or professional fees. The primary purpose of PAN is to prevent tax evasion by keeping a track of monetary transactions. The PAN is unique, national, and permanent.

if u have doubt let me know legal scan

Legal Scan said...

Trivedi, you are once again parroting what you said earlier. It was clearly stated that paying income tax or some other tax won't make your business legitimate.

Legal Scan said...

It is really hilarious that Trivedi equates the real business houses with the crooks like Amway.

Tex said...

Legal Scan,

It is really hilarious how clueless you, Shyam, and Brear are. LOL

Plus, all 3 of you are too chicken to talk on the phone. LOL

Legal Scan said...

Trivedi, quoting PAN number and paying income tax does not make the illegal business legal. Why don't you answer a simple question. Are you giving receipts to the retail customers if at all you are selling any Amway products.

Cyber Chanakyan said...

Amway starts it but some **** people like IBOFB and dtytrivedi are who really RUN & SUPPORT this crime... Okay, Legal Crime!
A simple math in a spreadsheet could prove how cheap the marketing plan is. I will prepare one and will spread awareness.
NOT AGAINST AMWAY, BUT AGAINST THE MARKETING TECHNIQUE THEY ADOPTED!

Shyam Sundar said...

Chanakya,
kindly send me a copy of the spreadsheet.