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
"
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
----------------------------------------------------------------------------------------------------
hemen parekh
16 Nov 2015
B2BmessageBlaster
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