Commission to Amway Distributors Not AMP Expense for Transfer Pricing: ITAT Delhi

Amway India Enterprises Private Limited Vs AO-NFAC (ITAT Delhi) Overview:  In the case of Amway India Enterprises Private Limited for AY 2020-21, the Delhi ITAT ruled that commission paid to local distributors should not be classified as AMP (Advertising, Marketing, and Promotion) expenses for transfer pricing purposes. The ITAT noted that in prior years, commission payments were not treated as part of AMP expenses, and the same principle should apply here. The court emphasized that Multi-Level Marketing (MLM) is a distinct model where commissions depend on sales, not on product branding. The...