Skip to main content

How can e-comm sites be retailers for tax and not for FDI

By
The Delhi High Court has observed that if the central and state governments were not treating e-commerce sites such as Flipkart and Amazon as retailers for foreign direct investment (FDI), they cannot be treated as retailers for taxation purposes.
Justice Rajiv Sahai Endlaw was of the “prima facie” view that if governments were treating transactions by e-commerce sites as retail sale for tax purposes, then how can they say these firms are not retailers for receiving FDI.
“Prima facie, the Union of India/state governments cannot, on the one hand, for the purpose of tax, treat such sales as retail and on the other hand, for the purposes of investment, not treat the same as retail sale,” the court said.
The observation by the court came while hearing a plea alleging that e-commerce sites are violating FDI policy by retailing goods through Internet.
The court has also issued notices to the Centre, Delhi gover nment, Reserve Bank of India and the Enforcement Directorate, seeking their replies on the plea by an association of footwear makers and retailers, which has contended that though FDI is prohibited in retail “but entities retailing goods through the Internet are not being restrained from accepting foreign investment”.
It contended that Internetbased entities are in this way violating the FDI policy and thus, prejudice was being caused to them.
Hindustan Times, New Delhi, 28th Sept. 2015

Comments

Post a Comment

Popular posts from this blog

Data storage norm splits digital payments industry

By
Data storage norm splits digital payments industry  India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move.  In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET.  “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week.  RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...
18 comments
Read more

Offer’s for all of you

By
Great Bumper Dhamaka Offer’s for all of you... It's Time to see your Business Online, WebeCreator Offer Website Designing with domain & Email @ nominal charges. For a year For More information visit us http://goo.gl/KlpppF call on 9890151261/9773197533  drop a mail to sales@webecreator.com
Post a Comment
Read more

Sebi to finalise options in commodities today

By
The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...
17 comments
Read more