Saturday 7 December 2019

E-tailers need to submit FDI compliance report

E-tailers need to submit FDI compliance reportNEW DELHI: The government has amended the Foreign Exchange Management Act rules to make it mandatory for e-commerce players like Amazon and Flipkart to submit foreign direct investment (FDI) policy compliance report by a statutory auditor by September 30 each year.

The move, aimed at ensuring compliance by online marketplaces with FDI, was announced last month but has been notified now. It comes against the backdrop of trader organisations across the country levelling allegations of deep discounting and predatory pricing at these online marketplaces.

Both Amazon and Walmart-backed Flipkart refuted the claims. “Amazon has a high bar for compliance and we continue to comply with all applicable laws,” an Amazon India spokesperson said.

“Flipkart marketplace is in full compliance of governing FDI laws in the country and we remain fully agreeable with providing the statutory auditor report for the same,” a Flipkart India spokesperson said.

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