The government at the moment does not have any proposal to handle the ownership stake of foreigners in India’s e-commerce sector though it continues to have ‘detailed deliberations’ with unique stakeholders on the upcoming e-commerce policy. “No such proposal is under consideration in the Department presently,” mentioned Minister of State for Commerce and Industry Som Parkash in a written reply to a query in the Rajya Sabha on Friday. The minister was answering the query of irrespective of whether the government has any proposal to handle the ownership stake of foreigners in the e-commerce sectors. Parkash mentioned that useful recommendations have been received from several stakeholders and that detailed deliberations are becoming held to finalise the e-commerce policy.
The minister also informed that no information is maintained by the government on the year-smart specifics of tax subsidy granted to e-commerce corporations in the final 5 years as “there is no separate category for entities as e-commerce companies as per the Income-Tax Act, 1961.”
The e-commerce policy, which has been in the operates given that early 2019, is probably to be rolled out this year as the government appears to regulate the sector that has witnessed billions invested into it by foreign and domestic investors more than the previous decade and more, and numerous world-wide-web organizations valued at $1 billion or above. The government, in its newest upcoming draft of the e-commerce policy, which was leaked final week and observed by TheSpuzz Online, had asked corporations in the e-commerce sector, which is led by Flipkart and Amazon, to guarantee equal therapy of all sellers and vendors registered on their platforms. It also asked them not to adopt algorithms that outcome in prioritizing pick vendors and sellers.
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In a meeting held involving the e-commerce corporations, market associations, and DPIIT Secretary Guruprasad Mohapatra on Friday, FICCI mentioned that if the government or authorities really feel that any organization irrespective of their ownership are discovered violating the law, the government might speak with them straight and take proper action. A copy of the letter signed by FICCI President Uday Shankar and sent to Mohapatra on Friday was observed by TheSpuzz Online.
Traders’ body CAIT has been alleging violation of FDI norms by e-commerce corporations such as Amazon and Flipkart more than the previous handful of years. In a letter sent to Commerce Minister Piyush Goyal on Thursday, CAIT named for replacing Press Note No.2 of FDI Policy with a fresh one. CAIT recommended that in order to clearly demarcate the boundary involving “marketplace model” and “inventory-based model”, any variety of direct/indirect, equity or financial connection, involving “e-commerce marketplace entity” and “seller on its platform” should really be prohibited. For this goal, any variety of connection involving “marketplace entity” and “Seller”, irrespective of whether direct or indirect, equity or financial or otherwise should really be strictly prohibited.