Lok Sabha Question No. 132 (STARRED), answered on 2016-07-26
Subject: Shifting Trend of Consumers
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: M. K. RAGHAVAN

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK SABHA

STARRED QUESTION NO. *132

TO BE ANSWERED ON 26.07.2016

## SHIFTING TREND OF CONSUMERS

## *132.   SHRI M.K. RAGHAVAN:

## Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether any study has been conducted to assess the shifting trend of the consumers to online retail trade and its impact on conventional retail trade and if so, the details and the outcome thereof;
- (b) whether  any  measures  are  being  adopted  to  protect  the  interest  of  the  conventional retailers, ensure product durability and check tax evasions; and
- (c) if so, the details thereof?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h ¼Jh jke foykl ikloku½

## THE MINISTER OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI RAM VILAS PASWAN)

(a) to (c) :

A Statement is laid on the Table of the House.

*****

## STATEMENT  REFERRED  IN  REPLY  TO  PARTS  (a)  TO  (c)  OF  LOK  SABHA STARRED QUESTION NO.*132 FOR 26.07.2016 REGARDING SHIFTING TREND OF CONSUMERS.

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## (a) : No such study has been conducted by the Government.

(b) & (c) : In  order  to  protect  the  interest  of  the  conventional  retailers,  Foreign  Direct Investment (FDI) in the retail trading sector is being opened in a calibrated manner. In the multibrand retail  trading,  so  far  only  51%  FDI,  that  too  under  the  Government  route,  is  permitted. However, these openings are also subject to appropriate restrictions on e-commerce as it evolves.

For ensuring quality/durability of the products, various administrative Department/Ministries  issues  guidelines  from  time  to  time  which  are  equally  applicable  to products purchased/sold through e-commerce. e.g., Department of Electronics and Information Technology has specified standard for 30 electronic and IT goods under compulsory registration scheme.

As  regards  taxation  of  e-commerce,  Chapter  VIII  titled  'Equalization  Levy''  has  been inserted in the Finance Act, 2016. It provides for the following:-

- (i) An equalisation  levy  of  6  %  of  the  amount  of  consideration  for  any  specified  services (online advertisement, any provision for digital advertising space or any other facility or service for the purpose of online advertisement and other notified services) any received or  receivable  by  a  non-resident,  from  a  resident  in  India  who  carries  out  business  or profession, or from a non-resident having permanent establishment in India.
- (ii) However, no such levy shall be charged if:
- (i) the aggregate amount of consideration for specified services received or receivable by  a  non-resident  from  a  person  resident  in  India  and  carrying  on  business  or profession or from a non-resident having a permanent establishment in India does not exceed one lakh rupees in any previous year.
- (ii) the non-resident providing specified service has a permanent establishment in India and the specified service is effectively connected with such permanent establishment.
- (iii) The equalization levy has been brought into force from 1 st June, 2016.

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