Information and communications technology (ICT) in supply chain management has enabled corporations to use offshore facilities for outsourcing commercial activities. This has expanded service trade significantly but poses challenges for tax authorities. This article deals with one of the important issues – the supply chain management in E-commerce and taxation industries and the Permanent Establishment rule which mean is any fixed place of business of the employer and includes a branch, a mine, an oil well, gas well, a farm, timberland, a factory, a workshop, a warehouse, an office and an agency. This article examines issues surrounding the (1) rapid expansion of global electronic commerce in the context of supply chain management, (2) extant theory of taxation, (3) policy considerations and (4) e-commerce in the context of taxation. Based on the examples, this article explores the effective methods of supply chain management in the E-commerce industry, creates a taxonomy of recommender systems, including the interfaces they present to customers, the technologies used to create the recommendations, and the inputs they need from customers. Keywords: E-commerce, permanent establishment, International Taxation, supply chain management