Table of Contents CERTIFICATE ; DECLARATION ; ACKNOWLEDGEMENT ; TABLE OF CONTENTS ; LIST OF ABBREVIATIONS ; LIST OF CASES ; CHAPTER ONE INTRODUCTION ; 1.1 Technology and Law ; 1.2 Emergence of E-Commerce ; 1.3 E-Commerce & Globalization of Tax System ; 1.4 Implication for the State; 1.5 Research Methodology ; 1.5.1 Hypothesis ; 1.5.2 Finding ; 1.5.3 Research Objective ; 1.5.4 Method of Analysis ; 1.5.5 Mode of Citation ; 1.5.6 Research Questions ; 1.5.7 Scope ; 1.5.8 Chapterization ; CHAPTER TWO E-CONTRACTING & TAXATION- A BASIC UNDERSTANDING ; 2.1 Electronic Contract; 2.1.1 Present Scenario ; 2.1.2 Exception to Electronic Contracting ; 2.1.3 Hurdles to Electronic execution of commercial contract in India (Backlog in IT Act} ; 2.2 Electronic Taxation ; 2.2.1 Argument for taxing E-Commerce ; 2.2.2 Argument against taxing E-Commerce ; 2.2.3 High Powered Committee on Electronic Taxation-Indian initiative; CHAPTER THREE THE PRESENT LEGAL PARADIGM ; 3.1 UNCITRAL Model Law on E-Commerce ; 3.2 Indian initiative on E-Commerce legislation ; 3.2.1 The Electronic Commerce Act, 1998 ; 3.2.2 The Electronic Support Act, 1998 ; 3.2.3 Electronic Commerce Bill, 1999 ; 3.2.4 Information Technology Act, 2000 ; CHAPTERFOUR E-COMMERCE & TAXATION ; 4.1 Direct Tax and E-Commerce ; 4.2 Jurisdiction to tax ; 4.2.1 Indian Income tax law ; 4.2.2 Residence based taxation ; 4.2.3 Source based taxation ; 4.3 Characterization of Income ; 4.3.1 E-Commerce-Income Tax Act-Royalties or fees for technical services; 4.3.2 E-Commerce-Income Tax Act-Business Connection or PE (Business Income) ; 4.4 Indirect Tax and E-Commerce; 4.4.1 Indirect taxes and E-Commerce: India ; 4.4.1.1 Sales Tax ; 4.4.1.2 Custom Duties ; 4.4.2 Consumption Tax & E-Commerce ; 4.4.2.1 VAT Issues ; 4.4.2.2 Different approaches to implement VAT ; 4.4.2.3 Destination based taxation ; 4.4.2.4 Origin based VAT approach ; 4.4.2.5 Permanent Establishment for consumption tax purposes .; 4.4.3 VAT and taxation of E-Commerce transaction in EU ; 4.4.4 Application of V AT to sale of digital services within EU ; 4.4.5 VAT and taxation of E-Commerce transaction in US ; 4.4.6 Taxing the digital goods in India ; 4.4.7 Taxing of intangible goods in India ; 4.4.8 International V AT/GST Guidelines ; CHAPTER FIVE INTERNATIONAL TAX REGIME ; 5.1 Introduction to International taxation of E-Commerce ; 5.2 Explanation to International tax system ; 5.3 Double Taxation Treaty ; 5.4 The concept of Business Connection and E-Commerce ; 5.5 Understanding of the concept of Penn anent Establishment; 5.6 Alternative approach to the concept of Permanent Establishment ; 5.7 International initiative: Tax related issues in E-Commerce ; 5.7.1 OECD ; 5.7.2 The US response ; 5.7.3 The European Union ; 5.7.4 World Trade Organization ; 5.8 Drawbacks of the understanding of business connection ; 5.9 Critical analysis of the OECD PE Model; CHAPTER SIX FUTURE RELATIONSIDP OF TECHNOLOGY & TAXATION AND ITS IMPACT ON GOVERNMENT REVENUE ; 6.1 Impact of E-Commerce taxation policy on State & Local Government Revenue ; 6.2 E-Commerce: Impact on Consumers; 6.2.1 Electronic Commerce and Consumer protection; 6.2.2 Electronic Commerce and Consumer protection group ; 6.2.3 Ministry of International Trade and Industry, Japan (MITI) Proposals ; 6.3 Glimpse of Union Budget 2012-13 on IT Industry; CHAPTER SEVEN CONCLUSION AND SUGGESTION ; 7.1 Conclusion ; 7.2 Suggestions ; BIBLIOGRAPHY.