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Taxation of E-commerce in India: Direct Tax Issues

The e-commerce industry in India has witnessed exponential growth in terms of volumes and revenue and is expected to grow to over USD 15 billion by the end of 2015. Reports suggest India is on its way to becoming the world’s fastest growing e-commerce market. Despite the unprecedented growth in recent years, the tax framework governing the industry has not managed to keep pace with the rapidly changing business environment.

The advent of online marketplaces has enabled businesses to function in a virtual environment, which has rendered traditional taxation concepts redundant in some cases. In this article, we discuss some popular types of e-commerce businesses and the tax issues associated with them.

GST: Impact on Logistics in India

The logistics industry in India was estimated to be worth USD 130 billion in 2013 and has been growing rapidly. While the logistics sector could be among the primary bottlenecks in driving economic growth, it will also act as a catalyst to realising India’s ‘manufacturing dream’ over the next decade. In this article, we look at the various aspects of the logistics industry that may be affected by GST and how industry dynamics are likely to change once GST is implemented.

Taxation of E-commerce in India: Aggregator's Services under Service Tax

Budget 2015-16 made a change in service tax provisions to bring aggregators of services under the service tax net. This change will affect e-commerce businesses that own and manage software applications. However, it seems that only service providers who provide services to customers would be covered under its ambit; suppliers who sell goods to customers on web-based software applications may not be covered. However, businesses that connect service providers with prospective customers through web-based applications for services such as travel, hotels, cabs, etc. could be affected.

In this article, we look at the factors that will help businesses understand whether they would be regarded as aggregators under service tax and also help them align their structure. We also analyse the impact of the aggregator model on rent-a-cab services in two scenarios.

GST: Impact on the Manufacturing Sector in India

With initiatives such as ‘Make in India’, the Indian government realises that becoming a manufacturing hub will need several strategic reforms, one of which is the implementation of the Goods and Services Tax. While the new GST regime will usher in growth and opportunities for businesses in India, all major business dynamics will have to be thoroughly analysed to assess the impact of GST. In this article, we look at the possible impact of GST on the manufacturing sector in India.

Nexia Global Insight July 2015

Doing business in India gets easier under new government
During the last year, several policy initiatives have been introduced to make doing business in India easier and to facilitate foreign investment - and they are already having a visible impact.

The Hunt Report June 2015

Five tips to overcome obstacles while doing business in India
While entering India could be profitable, global businesses could face challenges specific to the local business environment, including the country’s diverse culture and demography. In this article, we discuss the five top tips to overcome typical obstacles faced by businesses to enter India.

FDI in Real Estate in India

After considering the slowdown in FDI in the real estate sector in India during 2009-2013, the government recently approved amendments to relax conditions in order to attract more FDI into the sector. Currently, 100% FDI under the automatic route is permitted in the construction and development of townships, housing, built-up infrastructure and construction-development projects. This update looks at the current environment for FDI in real estate in India.

FDI in Single Brand Product Retail Trading in India

The Indian government is progressively undertaking reforms and liberalising the retail sector to attract foreign investments. It has gradually eased the regulatory environment for retail trading to pave the way for retail innovation and enhance competitiveness of Indian enterprises through access to global designs, technologies and management practices. In this update, we look at the current scenario and conditions for FDI in single brand retail in India.

The Defence Sector in India: Strategic Context and Scope for Foreign Companies

India has the third largest armed forces in the world (approximately 1.2 million strong), with a defence budget of USD 40 billion for financial year 2015-16. A substantial amount of this budget is spent on capital acquisition. At current estimates, India will seek to procure at least USD 50 billion worth of equipment, parts and services over the next 10 years, making it one of the largest importers of conventional defence items globally. This presents a significant opportunity for foreign defence companies to supply to the lucrative Indian market. In this update, we look at the regulatory framework for investing in the defence sector in India.

An Insight into Corporate Social Responsibility Rules in India

India is reportedly the first country in the world to introduce statutory guidelines in the Companies Act, 2013 requiring certain companies to undertake CSR activities. Our note aims to provide an insight into the regulations governing CSR activities in India, issues clarified by the Ministry of Corporate Affairs and the benefits of integrating CSR activities into your business strategy.