TMI BlogReview of the policy on Foreign Direct Investment (FDI) in e-commerceX X X X Extracts X X X X X X X X Extracts X X X X ..... Automatic 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) e-commerce. 5.2.15.2.2 Definitions: i) E-commerce- E-commerce means buying and selling of goods and services including digital products over digital electronic network. ii) E-commerce entity- E-commerce entity means a company incorporated 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 resident outside I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e business into inventory based model. Inventory of a vendor will be deemed to be controlled by e-commerce marketplace entity if more than 25% of purchases of such vendor are from the marketplace entity or its group companies. v) An entity having equity participation 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 such marketplace entity. vi) In marketplace model goods/services made available for sale electronically on website should clearly provide name, address and other contact details of the seller. Post sales, delivery of goods to the customers and customer satisfac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place entity will be required to furnish a certificate along with a report of statutory auditor to Reserve Bank of India, confirming compliance of above guidelines, by 30th of September of every year for the preceding financial year. Subject to the conditions of FDI policy on services sector and applicable laws/regulations, security and other conditionalities, sale of services through e-commerce will be under automatic route. 3.0 The above decision will take effect from 01 February, 2019. (Atul Chaturvedi) Additional Secretary to the Government of India D/o IPP File No.: 5/3/2015-FC-I dated: 26 December, 2018 - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanage ..... X X X X Extracts X X X X X X X X Extracts X X X X
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