Let there be recognition – even if it took 7 years
That “ E-commerce “ is not much different than “ Ordinary Commerce “ – except that some of the “ processes “ are being carried out “ electronically / digitally “ – with many other processes remaining unchanged
Context :
Foreign Trade Policy may include a chapter on e-commerce biz / Mint / 06 Sept 2022
Extract :
The upcoming foreign trade policy is expected to have a chapter dedicated to e-commerce in an acknowledgement of the rising volume of digital transactions in the economy.
Recently, the Federation of Indian Export Organisations (FIEO), India’s apex exports body, requested the commerce ministry to provide incentives for e-commerce to bring them on par with conventional merchandise exports in the coming policy
FIEO said e-commerce retail exports, which have the potential to have a 10-times multiplier effect over the next three years, need to be provided with at least the same benefits available to the merchandise sector.
FIEO said currently export benefits are either unavailable or the process has not been defined, depriving e-commerce exporters of benefits of the goods and services tax regime, rebate of state and central taxes and levies scheme, and remission of duties and taxes on exported products scheme, among others.
“The need of the hour is to give e-commerce the same treatment as is available to conventional merchandise shipments. A separate chapter in the FTP should enlist all export benefits available to e-commerce, which should be at par with conventional exports," said Ajay Sahai, CEO and director-general of FIEO.
“Such an anomaly should be rectified by adopting the same ceiling for all processes and procedures… There is a need to align all ceilings of shipments for e-commerce with a uniform value. How can one expect a small player to be aware of these different limits?" said Sahai.
MY TAKE :
Ø Defining E – Commerce……………………………………………… [ 14 July 2015 ]
Extract :
E - Commerce " is nothing more than " Commerce " , where such exchange of values , take place electronically , as opposed to physically . It still remains Commerce , even when perceptions differ
Hence , regulations / controls / taxation etc that govern E-Commerce should , essentially remain the same as in case of Commerce
Ditto for FDI in e-Commerce
Mere elimination of an intermediary ( Distributor / Wholesaler / Dealer / Agent / Stockist etc ) , from the " Supply Chain " , itself cannot be the determining criteria
Ø E - Commerce is Easy Commerce !......................... [ 15 Nov 2015 ]
Extract :
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
Dear Dr Ajay Sahaiji,
{ Director General & CEO / ajaysahai@fieo.org }
Hindustan Times ( 16 Nov 2015 ) quotes Commerce Minister 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 "
I hope Smt Sitharamanji accepts your request :
“ The need of the hour is to give e-commerce the same treatment as is available to conventional merchandise shipments “
With regards,
Hemen Parekh
hcp@RecruitGuru.com / 06 Sept 2022
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