WHAT IS AN E-COMMERCE TRANSACTION ?
E-commerce transactions are transactions of buying or selling online, which are made through the use of computers / mobiles/ other telecommunications devices and equipments. It also involves conducting any transaction , which involves transfer of ownership or rights to use goods or services through a computer-mediated network
Various authorities have given definition of E-commerce as under : –
The High Powered committee constituted by the Central Board of Direct Taxes (“CBDT”)
“E-commerce as generally defined covers transactions involving offer and acceptance on networks. Mode of delivery and payment may be in digitized form or in traditional manner.”
Organization of Economic Co-operation and Development (“OECD”) working party on indicators for the information society
“the sale or purchase of goods or services, conducted over computer networks by methods specifically designed for the purpose of receiving or placing of orders. The goods or services are ordered by those methods, but the payment and the ultimate delivery of the goods or service do not have to be conducted online. An e-commerce transaction can be between enterprises, households, individuals, governments, and other public or private organisations.”
The United Nations Economic and Social Commission for Asia and the Pacific (“UNESCAP”)
“the process of using electronic methods and procedures to conduct all forms of business activity.”
Based on the above definitions, some of the key characterstics of e-commerce are as under : –
Electronic commerce can include several technologies , some of which are as under : –
- Mobile commerce,
- Electronic funds transfer – From one bank to another;
- Supply chain management,
- Internet marketing – Google, Facebook etc.
- Online transaction processing,
In E commerce transactions, atleastone part of the transaction’s life cycle, is carried out using World Wide Web (www.). These are additionally supported by e-mails and other applications. In recent times, Mobile applications are used extensively for e-commerce transactions.Online transactions via Amazon, Flipkart, Snapdeal, Alibaba, Paytm, etc., are covered under the definition of e-commerce.
E-COMMERCE TRANSACTION MEANING – BASE EROSION AND PROFIT SHIFTING (“BEPS”)
The key characterstics of an E-commerce transaction under the BEPS report are as under : –
- It involves sale or purchase of goods or services, conducted over computer Networks, by the use of methods which are specifically designed for the purpose of receiving or placing of orders;
- While order can be placed by any of these methods, the payment and the ultimate delivery of the goods or service may be conducted offline/physically;
- E-commerce transaction can be between enterprises, households, individuals, governments, and other public or private organisations.