E-commerce : Operational Aspects, Accounting, Auditing & Taxation Issues

With the introduction of World Wide Web in early 1990s, use of Internet for commerce has grown tremendously. E-commerce involves individuals and business organizations exchanging business information and instructions over electronic media using computers, telephones and other telecommunication equipments. There are two types of E-commerce ventures in operation: (a) the old brick and mortar companies, which have adopted electronic medium, particularly 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. Another way of classifying E-commerce is by the targeted counterpart of a business, viz. whether the counterpart is a final consumer or another business entity in the distribution chain. Accordingly, the two broad categories of E-commerce are: business-to-consumer (B2C) and business-to-business (B2B). This book explains the conceptual framework of E-commerce in simple and understandable language. More importantly, it examines the operational aspects of E-commerce and various related issues pertaining to accounting, auditing, taxation and related matters.