Govt grants 100 per cent FDI in Online E-commerce Market place

In a move that is required to help Foreign Investments in the e-commerce space, the government on Tuesday elucidated its position on foreign investment in e-commerce and allowed 100 per cent FDI in the marketplace configuration of e-commerce retailing under the automatic course. 

While FDI has not been allowed in stock based model of e-commerce, the government extended the meaning of marketplace to incorporate bolster administrations to sellers as for warehousing, logistics, order satisfaction, call center, payment accumulation and different administrations. 

In spite of the fact that the elucidation comes without clear FDI guidelines on different online retail models, the online marketplaces in India have as of now seen substantial outside ventures by a few worldwide players, (for example, Amazon) and into homegrown players, (for example, Flipkart and Snapdeal) who are working in the space. 

To bring clarity, the DIPP has additionally turned out with the meaning of 'e-commerce', 'stock based model' and 'marketplace model'. 

Marketplace model of e-commerce implies giving of an IT stage by an e-commerce element on a digital and electronic system to go about as a facilitator in the middle of buyer and seller. 

The stock based model of e-commerce implies an e-commerce movement where stock of merchandise and administrations is possessed by e-commerce element and is sold to shoppers specifically, as indicated by the guidelines. 

A marketplace substance will be allowed to go into exchanges with sellers enlisted on its stage on business-to-business premise, DIPP said. 

It said that an e-commerce firm, notwithstanding, won't be allowed to offer more than 25% of the deals influenced through its marketplace from one vendor or their gathering companies. 

"So as to give clarity to the surviving strategy, guidelines for FDI on e-commerce part have been planned," DIPP said. 

The government has as of now permitted 100% FDI in business-to-business (B2B) e-commerce.

Flipkart’s Ghaziabad Warehouse Raided

A warehouse worked by India's biggest e-business company Flipkart in Ghaziabad has gone under the scanner of the Commercial Taxes Dept. of Uttar Pradesh, which has slapped a penalty of Rs 13.8 lakh on the company, blaming it for non-compliance with the rules identified with import of goods.
"Two trucks were bringing shoes from outside Uttar Pradesh for the Dasna-based warehouse of Flipkart. On the other hand, they were convey a bigger number of goods than they had declared. Likewise, we discovered a blank Form 38 with them, which is an issue of non-compliance," said an official of the raid team.

Form 38 – Whenever one company sends products and merchandise starting with one state then onto the next, an appropriately filled Form 38 should be sent with the goods.

The authority discovered 171 sets of shoes in the truck that were undeclared. As per an alternate report, goods worth INR 47 Lakh have been seized by the powers.

The authority further included that the office has gotten number of grumblings against Flipkart from nearby traders about avoidance of VAT and offering goods underneath maximum retail cost (MRP). Be that as it may, Flipkart representative has denied any such frequency and called it totally wrong. "We are in compliance with the laws of the area and there was no raid or seizure of goods in our Ghaziabad warehouse," said the representative.

The authorities further included that more ecommerce organizations are under the scanner for comparative infringement and that they have begun researching the same.