The government is working on the definition of ‘e-commerce’ to clear the air over key issues such as taxation and foreign investment in the burgeoning sector.<\/p>\n
Commerce and Industry Minister Nirmala Sitharaman said her ministry has received inputs from almost all the states on the issues related with FDI in e-commerce segment.<\/p>\n
When asked whether the states are favouring FDI in the sector, she said: “Lets see. We will at least come out with some definition of what e-commerce is”.<\/p>\n
“We have got the inputs from the states. We are in the process of putting it all together,” Sitharaman told PTI.<\/p>\n
The minister on July 15 chaired a meeting of states on the issues related to foreign direct investment (FDI), the definition and taxation in the e-commerce sector. The states were asked to give their views and comments on the matter.<\/p>\n
After the meeting, officials had indicated that the ministry would come out with a detail clarification on the matter, as brick and mortar shops have raised serious concerns over the domestic e-retail players.<\/p>\n
As per the current FDI policy, e-commerce activities refer to the “activity of buying and selling by a company through the e-commerce platform”.<\/p>\n
“There is no clear definition as of now. It is creating confusion among new start-ups. The government should come up with a detailed definition,” PayU Money Head, Channel Partnerships, Paritosh said.<\/p>\n
Industry experts said that the government needs to define the term marketplace and also elaborate as to what constitutes retail and wholesale trading on online platforms.<\/p>\n
At present, 100 per cent FDI is allowed in business-to- business (B2B) e-commerce and not in the retail segment.<\/p>\n
Global retail giants as well as some domestic e-retailers want the government to relax the foreign investment norms in the the space.<\/p>\n
Global players are looking at India as it is one of the fastest-growing markets in Asia-Pacific, along with China. Rise in Internet penetration, adoption of smartphones and lower data rates are completely changing the way India shops.<\/p>\n
According to estimates, the sector’s size is around $5 billion annually. Analysts said online shopping is expanding at a massive rate.<\/p>\n
On the other hand, traders body CAIT has strongly opposed any kind of relaxation in FDI in e-commerce retail. They have alleged that e-commerce firms are violating FDI norms.<\/p>\n
Sitharaman said her ministry is in discussion with finance counterpart over the taxation issues.<\/p>\n
In the absence of detailed guidelines, tax disputes have cropped up between e-retailers and some states.<\/p>\n","protected":false},"excerpt":{"rendered":"
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