Currency Ban On Rs 500 And Rs 1000 Notes Affecting Many Business Sectors
With the big announcement that came on 8th Nov 2016, about the ban on Rs 500 and Rs 1000 currency notes, there were general tremors experienced by the people in India. Most of the people were hailing it as a master-stroke move against black money and terrorism. But, there were certain sections of people in society, which were making hue and cry regarding the move that has brought unneeded problems for them. In this post, we have provided the detailed study about the impact of demonetization on different types of businesses in India.
E-Commerce sales are badly affected because of the ban on currency notes of 500 and 1000 notes. eCommerce players were forced to stop “cash-on-delivery (COD)” payment mode on their site with this currency ban. Certain e Commerce players made restrictions on the order purchase value to below Rs 1000 while some stopped CoD orders from Wednesday, a day after the currency ban announcement.
eCommerce companies stopped receiving old denomination notes of Rs 500 and Rs 1000 notes and paid more importance on other means of digital payments. As per a research, “The cash on delivery share will come down and it will force buyers to make payments online. Initially, it may hurt eCommerce companies in the next 1–2 months.”. Besides, with the scarcity of cash, it is surely taking a toll on the conversion rate optimization practices and eCommerce sales are sooner or later dropping. You need Understand Income Tax Provision before depositing Rs 500 and 1000 note. For this, you can hire one of the Top CA Firms in Pune
It is a fact that most real estate businesses are done “under the table” with cash directly given to the sellers or builders with the rest amount to be settled later on. Also, it is now no secret that black money is strategically pooled into the real estate sector to escape the income tax radars. With the ban on notes of 500 and 1000, the hard cash will find time for its smooth circulation. It has reduced the demand for property in the market and has further slowed down the investment in the real estate sector as well. It will be quite difficult to attract home buyers with a hammer on the black money as black money holders used to utilize their money on posh and luxurious properties.
The impact of currency ban on the notes is having an adverse effect on a number of business areas, including Gold and jewellery sector, Stock Market and Banking and financial sector. With this current currency ban, the businesses that are solely dependent on cash payments are bound to suffer.