E-commerce (Hardback) | Released: 31 Jul 2015

With the introduction of internet in the early 1990s, the use of the web for E-commerce has grown tremendously. There are two types of E-commerce ventures in operation: (a) traditional brick and mortar businesses which have adopted electronic medium, particularly the internet, to enhance their existing products and services, and/or to offer new products and services, and (b) the pure E-ventures which have no visible physical presence. This difference has wider ramifications than mere visibility when it comes to issues like customers' trust, brand equity, ability to service the customers, adopting new business culture, and cost. This book explains the conceptual framework of E-commerce. It examines the operational aspects of E-commerce and various related issues pertaining to accounting, auditing, taxation, and more. [Subject: Business, Economics, Computer Technology]

Table of Contents:
1. E-commerce: Theoretical Settings 1.1 Traditional versus E-commerce 1.2 Definitions of E-commerce 1.3 E-commerce: The New World of Business 1.4 Growth of E-commerce 1.5 Critical Issues and Challenges 1.6 E-accounting 1.6.1 Revenue Issue: Gross versus Net 1.6.2 Definition of Software 1.6.3 Revenue Recognition 1.6.4 Miscellaneous Issues 1.7 E-auditing 1.7.1 Auditing Issues 1.8 Cyber Taxation 1.8.1 Direct Taxation 1.8.2 Indirect Taxation 1.8.3 Enforcement 1.9 Legal Issues 1.10 Operational Aspects of E-commerce 2. Literature on E-commerce 3. E-commerce and Accounting 3.1 Scope and Methodology 3.2 Profile of the Respondents 3.3 Views of the Professionals on E-Commerce Accounting 3.3.1 Website Development Costs 3.3.2 Cost of Operating a Website 3.3.3 Advertisement Barter Transactions 3.3.4 Accounting for Shipping and Handling Cost 3.3.5 Point and Loyalty Programmes 3.3.6 Rebates and Discounts 3.3.7 Hosting Arrangement 3.3.8 Depreciation of Hardware and Software for Long Term Use 3.3.9 Depreciation of Hardware and Software for Short Term Use 3.3.10 Depreciation of Hardware and Software with an Indeterminate Useful Life 3.3.11 Apportionment of Overheads for Joint Production 3.3.12 Impact of Exchange Rate Fluctuations 3.4 E-commerce Accounting Entries: Comparison of Views 3.5 Impact of E-commerce on Basic Accounting Concepts 3.5.1 Going Concern Concept 3.5.2 Relevance of Double Entry Bookkeeping System 3.6 Importance of Various Statements 3.7 Disclosures by Organizations Operating in E-Environment 3.7.1 Company’s Business 3.7.2 List of Important Customers 3.7.3 Services Offered 3.7.4 Revenue Earned Across Services 3.7.5 Special Arrangements 3.7.6 Significant Elements of Cost 3.7.7 Assurance on Going Concern Status 3.7.8 Future Sources of Funds 3.7.8 Other Disclosures 3.8 Human Resource Accounting for E-companies 3.9 Comparison among E-organizations and Traditional Organizations 3.10 Changing Role of CAs in E-environment 3.11 CAs as Certifying Authority for Digital Signatures 3.12 Summary and Conclusions 4. E-commerce and Auditing 4.1 Scope and Methodology 4.2 Profile of Responding Auditors 4.3 Audit Process in E-environment 4.4 Security Issues in E-Environment 4.4.1 Detection of Manipulations of E-information 4.4.2 Control of Access Rights 4.4.3 Monitoring of Access Control 4.4.4 Detection of Exploitation of Anonymity of E-transactions 4.5 Verification: Role of Vouchers in E-environment 4.6 Risk Assessment 4.7 Going Concern Certificate 4.7.1 Reasons for Certifying as Going Concern for at Least One Year 4.7.2 Reasons for Certifying as Going Concern for More than One Year 4.8 Changing Role of Auditor in E-environment 4.8.1 Providing Assurance Regarding Value Added Networks etc 4.8.2 Verification for Integrity of Data 4.8.3 Verification for Source of Data 4.8.4 Verification for Completeness of Electronic Data 4.8.5 Assessment of Electronic Transfer of Payments 4.8.6 Audit of the Accounting for Assets 4.8.7 Assessment of the Organization’s Website 4.8.8 Providing Expertise on Internal Control Structure 4.8.9 Assisting in the Continual Evaluation of the E-commerce System 4.8.10 Audit of Functional Areas 4.8.11 Performing Operational Audit 4.8.12 Coordinating Internal and External Audit Assessment 4.9 Other Areas 4.9.1 Costing Auditors in E-environment 4.9.2 Need for E-knowledge 4.9.3 Audit Techniques 4.9.4 Forensic Accounting 4.9.5 Support System for E-audit 4.9.6 Liability of Auditors for Use of Pirated Software by Clients 4.9.7 Additional Responsibilities for the Auditors in E-environment 4.10 Summary and Conclusions 5. E-commerce and Taxation 5.1 Scope and Methodology 5.2 Profile of the Respondents 5.3 Perceptions of Tax Professionals on E-taxation 5.3.1 Overview of the Existing Tax Regime 5.4 Direct Taxation 5.4.1 Basis for E-taxation 5.4.2 Defining 'Permanent Establishment' 5.4.3 Criteria for Identifying Taxable Online Business Organizations 5.4.4 Characterization of Income in Certain Specific E-transactions 5.5 Indirect Taxation 5.5.1 Sales Tax and Uses Tax 5.5.2 Bit Tax 5.5.3 Flat E-tax 5.5.4 VAT on E-Commerce Transactions 5.5.5 Charging of Value Added Tax 5.5.6 Accountability for VAT When Delivery is Online 5.6 Tariffs on Exports and Imports 5.6.1 Import Duties on E-transactions 5.6.2 Taxes on Goods Exported Electronically 5.7 Fiscal Enforcement 5.7.1 Neutrality of E-Tax 5.7.2 Relationship between Tax and Mode of Delivery 5.7.3 Tax Havens and Electronic Commerce 5.7.4 Registration of Internet Sites 5.7.5 Transfer Pricing 5.7.6 Apportionment of Overhead Costs for Joint Production across National Boundaries 5.7.7 Sharing of Tax Revenues between Multiple Jurisdictions 5.7.8 Impact of Using Electronic Cash 5.7.9 Compliance Models to Secure E-Tax Collections 5.7.10 Tax Evasion and Avoidance 5.7.11 Cost of Compliance 5.7.12 Role of Internet Service Providers 5.7.13 Role of Banks in Enforcing E-tax 5.7.14 Issue of Smart Cards by Banks 5.7.15 Need for International Agreement on Access to Credit Card Transaction Data 5.7.16 ISPs as Reporting and Collecting Agents 5.7.17 Other Agencies for Tax Collection 5.7.18 Need for a Separate System of Disclosures 5.7.19 Disclosures in Tax Return Forms 5.7.20 Verification of Records Kept in Other Jurisdictions 5.7.21 Managing Short-Term Businesses 5.7.22 Licensing of Web Sellers 5.7.23 Monitoring and Surveillance by Tax Department 5.7.24 Development of Monitoring System 5.8 Summary and Conclusions 6. E-commerce: Views of Company Secretaries and Company Executives 6.1 Scope and Methodology 6.2 Profiles of the Respondents 6.3 Company Secretaries in E-environment 6.3.1 Within the Company 6.3.2 With the Office of the Registrar of Companies 6.3.3 With Various Legal Agencies 6.3.4 With the Shareholders 6.3.5 With the Customers 6.3.6 With the General Public 6.4 Use of Computers by Company Secretaries 6.5 Use of Computers by Company Secretaries with Outside Agencies 6.6 Activities Not Permitted by Law through E-mode 6.7 Use of Teleconferencing/Videoconferencing 6.8 Potential Pitfalls of E-commerce 6.9 Evolving Dimensions of E-Commerce 6.10 Global Competition at Home 6.11 Industries Suitable for Doing Business Electronically 6.12 Summary and Conclusions 7. Conclusions and Policy Implications 7.1 Conclusions 7.1.1 E-accounting 7.1.2 E-auditing 7.1.3 E-taxation 7.1.4 Legal Compliance in E-environment 7.1.5 Operational Aspects of E-commerce 7.2 Policy Implications 7.2.1 E-accounting 7.2.2 E-auditing 7.2.3 E-tax 7.2.4 E-company Secretary 7.3 Scope for Further Research Bibliography Index