-Alok Gupta
One of the current challenges being faced by the traditional wholesale, trading and retail enterprises are the discounts offered by the sellers using e-commerce portals like Flipkart, Snapdeal, Amazon and others.
To attract customers to their portals and give them “an offer that they cannot refuse,” some of these portals could be encouraging partners to unethically sell below the cost and then subsidizing them for their losses.
Here are the simple 2-point resolution :
1) E-commerce portals should not be allowed to offer these subsidies under predatory trade practices ( http://en.wikipedia.org/wiki/Predatory_pricing ) and unfair trade practices.
2) E-commerce portals should not be allowed to carry forward any losses made on this accord to subsequent years as these losses have been made willfully, voluntarily and intentionally and not because of any business compulsions. ( http://taxguru.in/income-tax/all-about-carry-forward-and-set-off-of-losses-under-the-income-tax-act.html )
This will allow a level playing field for all players of the game.
(The author is the Software Licencing Specialist & CEO at Softmart Solutions and is rechable in alok@softmartonline.com . The views expressed in this article are those of the author and do not represent the views of Channel Times or any of the websites managed or operated by Trivone Digital Services)