The Indian Government had constituted the High Powered Committee (“HPC”) in December 1999, to examine the position of e-commerce transactions under existing taxation laws, to determine changes, if any, required to be made and the implementation of the taxation of e-commerce transactions.

The HPC submitted its report to the Government in July 2001, which was made open to the public for comments in September 2001. At the outset we would like to applaud the HPC for having undertaken a Herculean task of attempting to address the issue of e-commerce taxation. The HPC has made a laudable effort in addressing the complex issues relating to taxation of this new economy form of business. The Government, realizing the significance of e-commerce to the Indian economy, in a welcome move has invited public comments on the report of the HPC (“Report”). We believe that the Indian Government recognizes that the observations of the HPC reflect only one view, and hope that the Indian Government will reserve judgment on the subject until all propositions have been heard.

With a view to provide a global perspective on the taxation of e-commerce to the Government of India, Mr. Nishith Desai, the founder member of Nishith Desai Associates ("NDA"), a legal and tax counselling firm has through his firm NDA, approached renowned and eminent experts in the field of international taxation, including academicians, professionals and industry experts around the world both from developed and the developing countries and convened a group called the "eComTaxpert Group".