Tuesday, 29 March 2016
Today's ( 30 March 2016 )
Hindustan Times carries following news report :
Department of Industrial
Policy and Promotion ( DIPP ) issued following notification yesterday :
* 100 % FDI under
automatic route is permitted in market place model of e-commerce
* FDI was not permitted
in the " inventory based " model of e-commerce, implying companies
that get FDI cannot buy and store goods from various vendors to eventually sell
to consumers
* FDI will be
permitted only if the products from a single vendor or a group of companies do
not exceed the quarter of the online retail " market place's " total
sales
I suppose , this notification
is just the beginning of unshackling of the E Commerce, whose contours I outlined
in my E mail (16 Nov 2015 ) to Union Cabinet
Ministers / DIPP , as follows :
-------------------------------------------------------------------------------------
E -
Commerce is Easy Commerce !
Hindustan Times (16 Nov 2015)
quotes Commerce Minister Ms Nirmala Sitharaman as
follows :
" The Government
is working on the definition of E Commerce to clear the air over issues such as
taxation and Foreign Investment
We have got the inputs from States
. We are in the process of putting it all together "
Not an easy task to define
what is E Commerce ( and what is not ), considering all the possible
permutations / combinations ( running into LAKHS of them ! ) , of the following
elements :
#
NATURE
* A physical " Product " ( Capital Goods / FMCG / Consumables /
Perishables )
* A virtual " Service " ( Medical advice /
Legal advice / Consultancy / Software etc )
#
GEOGRAPHIC SPREAD
* Across National boundaries ( International
Trade )
* Across State boundaries
( within India )
* Across Municipal boundaries (within a State )
#
SUPPLY- CHAIN / INTERMEDIARIES
* Mfr > Distributor > Dealer
> Retailer > Buyer
* Mfr > Buyer
* Any disintermediation in the above chain
#
ORDER PLACEMENT / ACCEPTANCE
* In a physical location ( Shop / Store / Office / Factory / Home )
*
In a virtual location (Web site/Mobile App/SMS/ Email / Phone /
Video Conference )
#
DELIVERY
* Physically in a Shop / Store etc where Buyer collects / picks-up
from shelf
* Delivered to Buyer's location, thru Delivery Boy
* Delivered to Buyer's location, using a Drone
* Delivered to Buyer on his home-based 3D Printing Machine (
using internet )
#
PAYMENT
* Cash against delivery
* Pre-paid / Post-paid Cheque
*
Credit / Debit Cards across counter
* Credit / Debit Cards thru online Payment Gateways
* Through Mobile Wallets
* Electronic Bank Transfer
* Using Virtual Currency like Bit-Coins
* Barter of Goods or Services
#
FOREIGN INVESTMENTS
* FDI in Manufacturing / Supply Chain / Payment Gateways -
Apps- Mobile Wallets
* FDI in Web sites like Amazon - Flipkart - Alibaba - Snapdeal etc
( What percentage ? )
Can you think of any other
" Elements " that I have forgotten ?
In any case , given the fact
that there can be lakhs ( if not millions ) of permutations / combinations of
the above-mentioned elements , one must not attempt to define what is E Commerce
( and what is not ) , by inclusion or exclusion of these elements in definition
Such a complex definition would
lead to thousands of court cases involving Governments and each court
interpreting the definition , differently !
The only definition that
would satisfy ALL of these permutations / combinations , is :
Any exchange of " Value
" between any number of parties , involving ,
> Goods or Services
, on the part of one party
with,
> Money or its
equivalent consideration , on the part of a second party
with or without using,
> Intermediary
services , on the parts of any other parties
-------------------------------------------------------------------------
www.hemenparekh.in / blogs
30 March 2016
hemen
parekh
Marol
, Mumbai , India
(
M ) +91 - 98,67,55,08,08
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