NEW DELHI, Dec 6:
The government has made it mandatory for e-commerce companies like Amazon and Flipkart to submit FDI policy compliance report by statutory auditor by September 30 every year, a move aimed at ensuring that they follow all the norms properly.
As per the government notification issued on Thursday, e-commerce companies have to obtain statutory auditor report by September-end for the preceding financial year.
Section 15 of the Foreign Exchange Management Act (FEMA) deals with e-commerce entities.
“Against Sl. No. 15.2.3, for entry (p), the following entry shall be substituted, namely-(p) e-commerce marketplace entity with FDI shall have to obtain and maintain a report of statutory auditor by 30th of September every year for the preceding financial year confirming compliance of the e-commerce guidelines,” the gazatte notification said According to government sources, this decision will help in ensuring compliance of FDI policy in the e-commerce sector. The move will raise compliance cost for such companies. Trader bodies have been raising concern over violation of foreign direct investment (FDI) norms. (PTI)
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