New Delhi, April 27 - The proposed e-commerce policy would help regulate the fast growing sector and bolster its growth, Commerce and Industry Minister Suresh Prabhu said today.
He said the policy would also protect the interest of companies that deal with e-commerce companies.
Earlier this week, the ministry held a consultation with stakeholders on the contours of the policy.
A think tank on e-commerce, headed by the minister, has decided to set up a task force to work on the policy. It would come out with the framework in the next six months to deal with issues such as competition, regulation, data privacy, taxation, localisation of servers and technology transfer.
"We are trying to regulate the e-commerce not to startle the growth but to promote its growth," he said here at the International Taxation Conference, organised by International Fiscal Association.
He said that in changing global scenario, it is becoming a big challenge to assess tax liability for trans-national transactions.
Citing example of e-commerce trade, Prabhu said online transactions originates at one place and concludes at another and in these such cases "how do you tax it."
"So it is going to be a challenging times for countries to decide ...How do you tax a person or entity which is not necessarily with in a domain of sovereign power," he added.
The minister said that in such a case, there might be a need for setting up of some sort of international organisation which can decide rules for this.
He also said that base erosion and profit shifting (BEPS) is another important area which needs a deliberation.