https://www.taxtmi.com/news?id=17099 Multi Level Marketing schemes that depend principally on recruitment and hefty subscription fees are characterised as pyramid or money circulation structures whose income derives from enrolling new members rather than genuine product sales; such schemes collapse when recruitment ceases, disproportionately harming participants lower in the network. Acceptance of funds under money circulation/MLM/pyramid structures attracts penal consequences under the Prize Chit and Money Circulation (Banning) Act, 1978, and the central government has issued a Model Framework and Gazette notification to guide State and UT regulation of direct selling. en-us Sat, 17 Dec 2016 10:35:01 +0530 Sat, 17 Dec 2016 10:35:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=17099 Multi Level Marketing schemes that depend principally on recruitment and hefty subscription fees are characterised as pyramid or money circulation structures whose income derives from enrolling new members rather than genuine product sales; such schemes collapse when recruitment ceases, disproportionately harming participants lower in the network. Acceptance of funds under money circulation/MLM/pyramid structures attracts penal consequences under the Prize Chit and Money Circulation (Banning) Act, 1978, and the central government has issued a Model Framework and Gazette notification to guide State and UT regulation of direct selling. News - Sat, 17 Dec 2016 10:35:01 +0530 https://www.taxtmi.com/news?id=17099