TaxTMI 
TaxTMI 
Guidelines for Foreign Direct Investment (FDI) on E-commerce
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....ermitted in following circumstances: i) A manufacturer is permitted to sell its products manufactured in India through e-commerce retail. ii) A single brand retail trading entity operating through brick and mortar stores, is permitted to undertake retail trading through e-commerce. iii) An Indian manufacturer is permitted to sell its own single brand products through e-commerce retail. Indian manufacturer would be the investee company, which is the owner of the Indian brand and which manufactures in India, in terms of value, at least 70% of its products in house, and sources, at most 30% from Indian manufacturers. 2.0 In order to provide clarity to the extant policy, guidelines for forei....
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....els and any other internet application 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 platform on B2B basis. iii) E-commerce marketplace may provide support services to sellers in respect of warehousing, logistics, order fulfillment, call centre, payment collection and other services. iv) E-commerce entity providing a marketplace will not exercise ownership over the inventory i.e. goods purported to be sold. Such an ownership over the inventory will render the business into inventory based model. v) An e-commerce entity will not permit more than 25% of the sales af....
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....stment (FDI) on E-commerce As per the FDI policy, contained in the `Consolidated FDI Policy Circular 2015' (FDI Policy) as amended from time to time, FDI up to 100% under automatic route is permitted in Business to Business (B2B) e-commerce. No FDI is permitted in Business to Consumer (B2C) e-commerce. However, FDI in B2C e-commerce is permitted in following circumstances: i) A manufacturer is permitted to sell its products manufactured in India through e-commerce retail. ii) A single brand retail trading entity operating through brick and mortar stores, is permitted to undertake retail trading through e-commerce. iii) An Indian manufacturer is permitted to sell its....
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....nd seller. 2.2 Guidelines for Foreign Direct Investment on e-commerce sector: i) 100% FDI under automatic route is permitted in marketplace model of e-commerce. ii) FDI is not permitted in inventory based model of e-commerce. 2.3 Other Conditions: i) Digital & electronic network will include network of computers, television channels and any other internet application 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 platform on B2B basis. iii) E-commerce marketplace may provide support services to sellers in respect of warehousing, logistics, order fulf....