American e-commerce major Amazon says that it is facing "substantial uncertainties" in interpretation of Indian laws, which could affect its business operation the country.
In a regulatory filing to the US Securities and Exchange Commission (SEC), the company has highlighted its concerns regarding the possible issues it could face with the complex Indian laws.
Company’s filing with SEC, cited by Business Standard said, "There are substantial uncertainties on the interpretation of China and India’s laws, and is possible the government will take a view contrary to ours."
The company has also raised similar concerns with the laws of China.
The firm was quoted by paper as saying: "Our Chinese and Indian businesses and operations may be unable to continue to operate if we or our affiliates are unable to access sufficient funding or if China enforces contractual relationships with respect to the management and control of such businesses."
Amazon has stated that the firm will face strict actions if its international activities were found in violation of any existing laws or regulations of these countries.
Recently, the tax authorities of Karnataka state raised objections to the procedure of tax returns by Amazon India.
Karnataka government commercial taxes commissioner Ajay Seth was quoted by The Economic Times saying: "We have clarified the legal position to them. But they haven’t understood the law and they are trying to interpret it in a way that’s unique to them."
Since India is yet to allow FDI in online retail, the e-commerce companies are allegedly setting up complex structures to project them as only technology platform and logistical support services providers for retailers in India.
Photo: The company has also raised similar concerns with the laws of China.Courtesy: FreeDigitalPhotos.net