TelecomLive January-2019

Inventory based B2C e-commerce www.telecomlive.com 27 Telecom LIVE January 2019 12. Acc i dent a l i nsurance f or Traders 13. UniformBalanced Tenancy Act inDelhi, Mumbai &other Cities on pattern of Gujarat Tenancy &Agricultural Lands Act 14. Policy to compensate Traders at any natural calamity. 15. Special Policy to empower Women Entrepreneurs in India. 16. Review of flaws, Acts, Rules & Regulations governing domes- tic trade. 7. Effective implementation of MUDRA Yojna through Trade AssociationsMudra should be m a d e a n i n d e p e n d e n t Regulator & Developer by a Lawof Parliament. 8. Better Banking Facilities for Small Businesses. 9. Business Friendly Food Safety &Standards Act. 10. Redefining of Credit Rating norms for trading comunity 11. Policy for upgradation & modernisation of retail trade. 1. National Trade Policy for Retail Trade & a Separate Ministry for Internal Trade. 2. An E-commerce policy for online trade 3. Separate Law & Act for E Commerce andDirect Selling. 4. No FDI in Retail & E Com- merce 5. Simplified CST Taxation Systemin India. 6. Incentives for digital pay- ments & encouragement of cashless economy. may provide support services to sellers in respect of ware- housing, logistics, order ful- fillment, call centre, payment collection and other services. iv) E-commerce entity providing a marketplace will not exer- cise ownership or control over the inventory i.e. goods pur- ported to be sold. Such an ownership or control over the inventory will render the business into inventory based model. Inventory of a vendor will be deemed to be con- trolled by e-commerce mar- ketplace entity if more than 25 per cent of purchases of such vendor are from the market- place entity or its group com- p a n i e s . ( o l d : v ) A n e - commerce entity will not permit more than 25 per cent of the sales value on financial year basis affected through its marketplace from one vendor or their group companies.) v) An entity having equity par- ticipation by e-commerce marketplace entity or its group companies, or having control on its inventory by e- commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by suchmarketplace entity. vi) I n ma r k e t p l a c e mo d e l goods/services made avail- able for sale electronically on website should clearly pro- inventory of goods and ser- vices is owned by e-commerce entity and is sold to the con- sumers directly. iv) Marketplace based model of e-commerce: It means providing of an information technology platform by an ecommerce entity on a digital & electronic network to act as a facilitator between buyer and seller. 5.2.15.2.3 Guidelines for For- eign Direct Investment on e- commerce sector i) 100 per cent FDI under auto- matic route is permitted in ma r k e t p l a c e mo d e l o f ecommerce. ii) FDI is not permitted in inven- t o r y ba s ed mode l o f e - commerce. 5.2.15.2.4OtherConditions i) Digital & electronic network will include network of com- puters, television channels and any other internet appli- cation used in automated manner such as web pages, extranets, mobiles etc. ii) Marketplace e-commerce entity will be permitted to enter into transactions with sellers registered on its plat- formon828 basis. iii) E-commerce marketplace 1.0 In order to provide clarity to FDI policy on e-commerce sector, Para 5.2.15.2 of the Con- solidated FDI Policy Circular 2017 will now read as under: 5.2.15.2 E-commerce activi- ties 5.2.15.2.1 Subject to provisions of FDI Policy, e-commerce entities would engage only in Business to Business (B2B) e-commerce and not in Business to Consumer (B2C) ecommerce. 5.2.15.2.2Definitions: i) E-commerce: It means buy- ing and selling of goods and services including digital products over digital & elec- tronic network. ii) E-commerce entity: It means a company incorpo- rated under the Companies Act 1956 or the Companies Act 2013 or a foreign company covered under section 2 (42) of the Companies Act, 2013 or an office, branch or agency in India as provided in section 2 (v) (iii) of FEMA 1999, owned or controlled by a person resi- dent outside India and con- ducting the e-commerce busi- ness. iii) Inventory based model of e-commerce: It means an e- commerce activity where Sector/ Activity Per cent of Equity/FDI cap Entry Route E-commerce activities 100 per cent Automatic Box-B: Extract of PN-2/2018 dated Dec 26, 2018 Box-A: National Charter