Rights and Duties of the Direct seller/Company

  1. Eligibility: The direct seller must be eligible to enter into a valid contract under the Indian Contract Act, i.e. the direct seller must be above 18 years of age; of sound mind; and otherwise not disqualified by law to enter into a contract.
  2. Agreement/Contract: The direct sellers must enter into an agreement with the company outlining the terms of such appointment.
  3. Resignation - The direct seller may resign from the company without giving a reason.
  4. Privacy - The company should ensure confidentiality of data of its direct sellers including the information submitted for fulfilling the KYC/KYDS formalities and not part with it for commercial purposes.
  5. Additional Recommendations from Strategy India

    Complaint Resolution - The company should have an online complaint resolution mechanism and all complaints should be resolved within 21 working days of being received by the company.

  6. Additional Recommendations from Strategy India

    Right to Know - Every individual (prospect) approached to will have the full right to know the compensation plan and product details with relevant policies before enrolment.

  7. Taxation - TDS to be filed and deposited accurately and on time against the PAN numbers of the direct sellers as per the rules of the Income Tax Act, 1961.
  8. Additional Recommendations from Strategy India

    Goods and Service tax

    • If the company pays the Goods and Service Tax to the government on the Maximum Retail Price of the product sold to the direct sellers at wholesale prices, the direct sellers need not register for the Goods and Service tax number on crossing the threshold limit.
    • If the company does not pay the Goods and Service Tax to the government on the Maximum Retail price of the product sold to the direct sellers at wholesale prices, the direct sellers will be required to register themselves as per the requirement.
  9. Additional Recommendations from Strategy India

    No Prohibition - A direct seller may engage in multiple opportunities at the same time as long as he does not disturb the business of the company/ies he is associated with.

  10. Additional Recommendations from Strategy India

    No Compulsion - The direct selling company or direct seller should not force others to attend any event.

  11. Additional Recommendations from Strategy India

    Essential Details - Each direct seller should be issued ID cards with Name, Address of the individual, Contact number, ID number, Tenure of validity, Address of the head office and Contact number of the company.

  12. Additional Recommendations from Strategy India

    Notice - The direct sellers should be given a 3-months notice before addition or alteration of any policy related to the business.

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