The rules have been incorporated in the consolidated FDI policy document. Under the policy, 100-per cent FDI is permitted in wholesale trading and 51 per cent in single-brand retail, while foreign investment is not allowed in multi-brand retail. According to new guidelines, whether a transaction is wholesale or retail would depend on the type of customers.
Wholesale trading would mean sale to retailers, industrial, commercial, other professional business users or to other wholesalers, but not for personal consumption. Excepting for sales to the government, wholesale trading could be done with business entities holding VAT registration, sales tax, service tax and trade licences.
It would also include resale, processing and thereafter sale, bulk imports with export/ex-bonded warehouse business sales and B2B e-commerce.
Published 02 April 2010, 16:19 IST