CAIT demands immediate roll out of e-commerce policy
The CAIT in a written submission said that e-commerce business in the country needs to be revamped and e-commerce policy should be rolled out immediately.
In its memorandum, the CAIT has said that by actively working on speedy roll out of e commerce policy, the Government has taken a strong making its intentions amply clear that the policy will be strictly implemented in its letter and spirit. "However, the monitoring of compliance of the policy is a big challenge since in the absence of any Regulatory mechanism, the Government has very little knowledge about the actual numbers of e commerce portals working in the Country since their Registration with any Authority is not mandatory," a CAIT release said.
CAIT said a Regulatory Authority should be constituted to regulate and monitor the e commerce business in India with adequate powers to penalise or take action against a entity which violates the e commerce policy.
"Restriction and conditions imposed on global e commerce players should be made applicable on domestic e commerce companies also to maintain even level playing field. Every E Commerce portal should obtain a Registration from the Authority before its operations. Any entity found conducting business without Registration should be strictly penalised. E Commerce portals working as Marketplace should mandatorily have a Office in India," demanded the trade body.
Its other demands included: "There should be a clear distinction between market place and inventory modal of e commerce. Each portal should obtain a Compliance Certificate from the Authority every year for due compliance of the policy and rules of the Government. No Cash back should be allowed by group companies of marketplace entities to buyers. A High level Committee should be formed to assess the impact of e commerce on offline traders, small Industries and domestic manufacturers and necessary steps should be taken after the report and recommendation of the Committee. Payment gateway service providers’duly licensed by RBI should not be allowed to remit funds outside India without deduction of tax at source on behalf of the offshore retailers."
Praveen Khandelwal, Secretary General, Confederation of All India Traders said, "Cash on Delivery on supplies through e commerce should be banned and instead payments by digital modes should be allowed. It is to be ensured that all kinds of malpractices including predatory pricing, deep discounts and loss funding do not exist in e commerce business. A comprehensive e commerce policy covering both global and domestic e commerce companies should be announced immediately to ensure even level playing field and fair competition in e commerce business of the Country."