Benefits of BSNL RED (Retired Employee Distributor) Scheme; BSNL RED Commission Structure & Incentive for Sale of Products

BSNL introduced BSNL RED (Retired Employee distributor) Scheme wherein a retired BSNL Official can become a part of BSNL Sales Team for selling BSNL Products or Services on commission basis. This scheme (BSNL RED Scheme 2020) was launched soon after the implementation of BSNL VRS Scheme 2019 where around 80,000 employees opted for Voluntary Retirement Scheme on 29th February 2020.

Many of the VRS optees were previously working for Sales & Marketing units of the BSNL telecom circles. To address the shortage of direct selling agent / Sales persons and to make use of experienced BSNL VRS optees, BSNL introduced RED (Retired Employee distributor) Scheme 2020. The RED (Retired Employee Distributor) shall market and sell BSNL products e.g. SIM, Ctop-up, etc. to customers at their door steps and through organizing Mela / Camp at various locations in the Business Area. REDs shall earn commissions/ discounts for selling BSNL products and services.

BSNL RED (Retired Employee Distributor) Policy Terms & Conditions, Requirements

The initial period of agreement shall be for 3 years.
Eligibility Criteria: Only retired employees of BSNL willing to serve customers / prospects at their premises & through organizing Mela /Camp etc. shall be eligible to apply.
Should have a valid PAN No.
Should have a valid Goods and Services Tax (GST) registration Certificate No. for respective state (if applicable).
Self-declaration that the applicant is not black listed by the GST authorities.
Self-declaration that the applicant is retired from BSNL.
In case the RED gets black-listed during the tenure of BSNL contract, then adequate indemnity clause should be inserted to ensure that no loss of credit is borne by BSNL due to a default of RED.
Security Deposit: Refundable Security Deposit of Rs.500/- (Rupees five Hundred only).
Area of Operation: RED shall be allowed to operate within SSA where he/she is registered.
RED will be given free C-TOPUP SIM with applicable concessional tariff and freebies.

Verification of credentials of new customers by RED

Verification of credentials of new customers – Verification of PIA (photo, identity and address) of new customer to be done as per the various guidelines issued by DoT and BSNL from time to time. REDs will be responsible for the verifications done by him/her.
RED shall obtain from customers/subscribers such documents as prescribed from time to time by BSNL.

Commission/Discount structure for RED ( Retired Employee Distributor)

BSNL Discount / Incentive / Margin to RED (Retired Employee Distributor)
a) For Postpaid Products
Sl No	Name of Product	Particulars	Initial Discount / Margin to RED	Seconday / Subsequent Incentive to RED
1	Postpaid Voice & Data Plan	SIM & Activation (Note)	NIL	90% of existing franchisee commission (Rs.80/- on deposit of security amount at the time of activation)
		Any Monthly Plan	90% of existing franchisee commission (Rs.80/- on deposit of security amount at the time of activation)	90% of existing franchisee commission (Balance incentive if any will be paid @14% of Fixed monthly Charges (FMC) at the end each month for six months subject to maximum of 90% of lowest FMC or Rs 500/- ( Including initial payment of Rs. 80/-) whichever is less and payment of monthly bills by the customer.)
a) For Prepaid Products
Sl No	Name of Product	Particulars	Discount, Margin and Incentive to RED
2	Postpaid Voice & Data Plan	SIM & Activation (Note)	90% of CAF existing Franchisee commission (At present CAF commission for both physical and e-KYC CAF activation is Rs. 10/- per activation and is applicable after submission of CAF and activation of SIM). (Note)
		Any Monthly Plan	90% of existing Franchisee discount/margin (90% of Plan voucher or Rs.100/- whichever is less. For special plans where discount is specified, the same is applicable.)
a) For Recharge Voucgers / Top Up Vouchers
Sl No	Name of Product		Discount, Margin and Incentive to RED
3	All Top-up Vouchers / Flexi Topup / STV (Special Tariff Vouchers)/ RCV (Recharge Vouchers) / CTOPUP		70% of Franchisee Discount @ 4.66% on MRP (See Note) i.e. equivalent to existing retailer discount share
Note:- 1. At present CAF commission for both physical and e-KYC/D-KYC CAF activation is Rs. 10/- per activation 2. Rate of discount on all Top-up Vouchers / Flexi Top-up / STV (Special Tariff Vouchers)/ RCV (Recharge Vouchers) / C-TOPUP shall be calculated on MRP and subject to revision from time to time. 3. Discount on C-TOPUP/ recharge to RED shall be 70% of discount/ margin offered to Franchisees as being done in case of retailer and subject to revision from time to time. 4. MNP commission equivalent to existing retailer’s MNP commission shall also be applicable to REDs
BSNL reserves the right to modify any part this “RED (Retired Employee Distributor) Policy2020” and discount/ margin structure at any point of time with the approval of Director (Consumer Mobility), BSNL

Sales Targets for RED

There shall be minimum monthly sales target of 50 no. SIM/FRC and C-top-up/recharge of Rs. 5000/- Sales targets assigned to RED shall be communicated by BSNL Business Area on monthly basis. Targets will be reviewed every three months; if minimum monthly sales targets are not achieved by the RED then they would not be continued further.

Trade scheme benefit

Trade scheme benefit for REDs shall be as per the criteria being followed for existing retailer’s and its modification time to time.

Termination of Inactive RED

If not found active for six consecutive months, the RED may be terminated after issue of notice and seeking explanation. In case of any irregularity / violation of BSNL/ GoI rules, the RED registration may be terminated without any notice.

Extension/Migration

BSNL Business Area Head may extend / migrate agreement on year-to-year basis for a period of two years with RED on same terms for the active RED. Decision of BSNL shall be final and binding in this regard.

Procedure for purchase and sale of BSNL Products

BSNL and RED shall observe the following procedure in connection with purchase and sale of BSNL Products:

The RED shall place an order for purchase of products from BSNL.
The payment for buying of any products of BSNL by RED shall be made in advance.
Upon dispatch of ordered products, BSNL shall raise an invoice on the RED, net of applicable discount to be provided to RED.
BSNL will charge GST on the price at the transaction value i.e. the price at which BSNL sells its products to RED. BSNL would raise sale invoice for sale of BSNL products to RED.
GST paid by RED to BSNL shall be available to RED as input tax credit which can be set off against the GST charged by RED to the retailer
Secondary / subsequent incentives such as incentive on FRC/RC, any scheme based incentive etc. to RED shall be given online in the form of c-top-up value through any platform like Sanchar-soft/Pyro/ERP after levy of applicable taxes i.e. TDS /GST etc, wherever applicable.
For the subsequent incentives provided by BSNL (refer point 5 above), RED will raise an invoice (along with applicable GST) on BSNL. Since incentive is paid to RED in the form of c-topup, BSNL will also raise an invoice (along with applicable GST) on RED for allocation of such c-topup value.
Where RED is not registered under GST Act, it shall be the responsibility of BSNL to discharge liability under reverse charge mechanism. It is further agreed that RED shall not charge tax on invoice in such case.
BSNL shall, withhold tax at source under Chapter XVIIB of the IT Act, 1961 on the secondary/ subsequent incentive provided by BSNL to the RED for sale of BSNL Products.
GST paid by RED to BSNL and by BSNL to RED (as the case maybe w.r.t. secondary / subsequent incentive provided by BSNL) shall be available to RED and BSNL, respectively, as input tax credit which can be set off against the GST charged by RED or BSNL
Methodology and applicable tax deduction/reconciliation on payment like discount at the time of sale of BSNL Products, discount on FRC/RC, any scheme based incentive, etc. to RED may be changed time to time & necessary instructions shall be issued by concerned cell of BSNL Corporate Office.
The invoices raised by RED and BSNL should comply with all the conditions as prescribed under the tax invoice rules under Central Goods and Service Tax Rules, 2017
Where RED is not registered under GST Act, it shall be the responsibility of BSNL to discharge liability under reverse charge mechanism. It is further agreed that RED shall not charge tax on invoice.
Applicable Tax deductions/ reconciliation/ accounting related instructions/ guidelines shall be issued by concerned cell of BSNL Corporate Office, which shall be applicable to circle/SSA.

Invoice for Incentives

In case of secondary/ subsequent incentives granted to the RED it shall be the responsibility of RED to raise appropriate tax invoice as per the provisions of GST Act. BSNL reserves the right to be indemnified for the credit loss in case BSNL is unable to claim the ITC for any noncompliance / default in raising appropriate invoice by RED. Further all invoices should be sent to BSNL promptly and in no case beyond 30 days of Invoice date.

Read More : DOT/BSNL pensioners can submit Digital Life Certificate (Jeevan Pramaan) through BSNL Customer Service Centers : Check the list of approved BSNL CSCs

Dear readers, please share this information to BSNL retired employees in your friends circle. Since BSNL offers attractive commission structure, this would be financially beneficial to them.