The flurry of activity on e-commerce platforms has caught the attention of Parliament, with the Standing Committee on Finance asking the Centre to provide details of the tax structure of e-commerce firms.

The panel has also asked the Centre whether the Competition Commission of India has taken note of the volume of business transacted through these portals and its possible impact on unorganised retailers.

In a meeting last week, members of the panel unanimously asked the Revenue Department and the Corporate Affairs Ministry to provide them with details on the latest developments in the country’s e-commerce sector.

A member of the panel told BusinessLine that responses from both departments are expected within 15 days.

“Are they paying taxes properly? What is the earning of the exchequer from this large amount of business? What is the possible impact on (other) retailers? We have posed these questions,” he said. The rule says that the Ministry should get back to the panel within 15 days.

The 31-member panel is headed by veteran Congress leader M Veerappa Moily. Former Prime Minister Manmohan Singh is also a member of the high-profile panel. A number of associations of retail traders had approached political parties and the Finance Ministry demanding that controls be imposed on the e-commerce websites.

On Thursday the Revenue and the Finance Secretaries are due to depose before the panel on Demands for Grants. Questions on the issue are expected in that meeting too.

MPs want the Government to ensure that the large volume of trade does not hamper the interests of unorganised retailers. The issue is likely to echo in the Winter Session of Parliament, scheduled to begin in November.

BusinessLine had reported last week that e-commerce firms are coming in for a closer look by sales tax authorities. Almost all such firms have been offering massive discounts to consumers in their ongoing festive season sales.

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