Panel Discussion on ‘E Commerce & The Tax Implications For Your Supply Chain ‘ – An Initiative of Amcham’s Supply Chain & Logistics Committee & Tax & Tariff Committee , February 21, 2014 – Mumbai

Amcham India’s Supply Chain & Logistics Committee in collaboration with the Amcham Tax & Tariff Committee, organized a Panel Discussion on “E-Commerce and the Tax Implications for your Supply Chain” on February 21, 2014 at the office of Deloitte Touche Tohmatsu India Pvt. Ltd.

 

Ms. Neeru Ahuja, Chairperson, Amcham’s Tax & Tariff Committee & Partner, Deloitte Haskins & Sells, gave the Welcome Address. She emphasized the role of E-commerce in shaping of business and the significance of E-Commerce, Supply Chain & Taxation. She encouraged participants to make use of Amcham’s forums to put forth industry issues to be taken up by the committees with the Government.

 

The first speaker Mr. Sandeep Prakash, Regional Head, Amway India Enterprises Pvt. Ltd. presented a perspective on the E-commerce& Supply Chain industry. He spoke of the growing volume of E-Commerce transactions and the related benefits & challenges associated with supply chain & taxation. He also spoke of the noteworthy way in which China was coming to pace with it’s growing E-Commerce demands.

 

Mr. Rajesh Bhatia, Managing Director-Sales, Federal Express Corporation shared his views and opinions and gave the example of ‘Singles Day’ (11.11) Celebration in China which witnessed a record sale of 19 billion CNY (about 3 billion USD).

 

Mr. Prashant Deshpande, Indirect Tax Leader, Deloitte Touche Tohmatsu India Pvt. Ltd. shared his tax perspective in relation to E-commerce & the Supply Chain industry. He spoke on the importance of Digital content and Road permits – two very valid and crucial elements along with other aspects of taxation.

 

Mr. Rohinton Sidhwa, Tax Partner, Deloitte Haskins & Sells shared an international view on E-commerce and the similarities of tax implications in US and India. He believes that E-commerce is a revolution but can also be very disruptive in the future, if not handled appropriately as the statistics suggest.

 

Mr. Abhay Kekre, Member of SCL Committee & Director India CLS Asia Pacific, Johnson & Johnson Medical India concluded the discussions with the key take away ’s and gave the Vote of Thanks.

 

Shared below are some key points from the discussion :-
• The skews in the E-commerce space are significantly higher than what one experiences in the retail space.
• Taking into account that logistical support is an essential element for Supply chain and continues to be a challenge.
• One of the noteworthy facts learned at the discussion is that China is building a network to manage transactions of
more than $4.9 billion per day.
• Not so shocking as it may seem but, 75% of  the Internet users are below 35 yrs of age.
• Even the mobile internet users have over taken desktop/ laptop users in India.
• The ‘Monster of Tax’.
• When a customer looks at making a transaction on digital content online it has come to light how our country till date is
still way behind in its tax laws.
• For a supply chain manager road permits are their biggest nightmare.
• At a global level around 15 million customers are involved in B2C transactions, which just proves it will accelerate to
bigger statistics for the future.
• E-commerce is a revolution that is already changing the face of the virtual world and it is only at its nascent stage in
India.
• The complexity of municipal and city tax exist in the US as well.
• Keep your eyes and ears open for a G20 initiative.
• On a lighter note : There is something to be concerned about as tax professionals are getting very excited on the future
course of Taxes !!!