E-commerce Firms' Annual Sales From Each Vendor Capped At 25%

Posted By:
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    E-commerce players like Flipkart and Amazon will not be allowed to market more than 25 per cent of its annual sales coming from one vendor, the government on Monday clarified. The government had earlier mandated 25 per cent maximum sales from a single vendor but had not specified the period for computation of sales.

    "An e-commerce entity will not permit more than 25 per cent of the sales value on financial year basis affected through its marketplace from one vendor or their group companies," the Department of Industrial Policy and Promotion (DIPP) said in its consolidated FDI policy circular, released here. How to Become an Ecommerce Entrepreneur in India (in 5 Simple Steps)?

    E-commerce Firms' Annual Sales From Each Vendor Capped At 25%

    An official, who did not wish to be named, said that this provision encourage e-market players to sell goods from different vendors. The DIPP in a tweet stated that restriction of 25 per cent on sales of one vendor through a marketplace are to be computed on financial year basis.

    In the foreign direct investment (FDI) circular, the DIPP has also included the definition of 'competent authority' to grant government approval for foreign investment.

    It said the authority means the concerned administrative ministry/ department empowered to grant government approval for foreign investment under the extant FDI policy and FEMA (Foreign Exchange Management Act) Regulations. As the foreign investment promotion board has been abolished, the respective ministries have been authorized to approve foreign investment proposals.

    Further, the government clarifies that conversion of an LLP (limited liability partnership firms) into a company and vice-versa is permitted under automatic route for sectors where 100 per cent FDI is allowed.

    The DIPP, which deals with FDI related matters, compiles all policies related to foreign investment regime into a single document to make it simple and easy for investors to understand. Amazon India To Hire 4,000 People In India

    Goodreturns.in 

    Read more about: e commerce flipkart amazon
    Story first published: Tuesday, August 29, 2017, 12:33 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more