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Update: STPI clarifies to NASSCOM that there are no restrictions on work from home (WFH)

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Last month, NASSCOM made a detailed representation (see here) to STPI authorities, highlighting industry requirements related to enabling work from home on a permanent basis. Pursuant to our submission, STPI has shared its response with NASSCOM clarifying that there are no restrictions on work from home (WFH) on a long term basis. Given below are the recommendations which NASSCOM made and STPI response against each of them: Enable facility of working from a place outside the unit permanent: STPI response: WFH is nowadays a common practice in the IT/ITeS industry. Earlier, in order to facilitate units enabling them to avail WFH facility and also to secure regulatory compliances, STPI had taken up the matter at appropriate level and ensure that necessary provisions were introduced in Foreign...

Evolving role of States in New India

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Democracy is “of the People, by the People, for the People”. In Federal structure with enhanced focus on cooperative federalism, it is time to look at system in the spirit of Democracy beyond continued and growing prevailing Politicism. In Indian democracy, most of the subjects which matter to people of a State, are State subject or concurrent subject. There are State subjects, which are equally important & critical to every State, while some of the subjects are specific to State’s socio-economic-geo-political & other similar factors. For all these State subjects, Central Government is Policy making and Funding with larger perspective. It is all about enhancing the State’s all-round balanced ability, capability, capacity with enhanced focus on innovation and explore the unexplored ...

NASSCOM Recommendations on industry requirements under Income Tax Act to enable Work from Home on long term basis

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About 90% of the workforce employed in IT-BPM sector continues to work from home (WFH). Given the available technologies and an impetus from the SARS-CoV-2 pandemic, IT/ITeS companies are looking at a long term blended working model with both work from office and work from home as a permanent feature. Based on industry feedback in relation to provisions under Income Tax Act, 1961 (Act), there is uncertainty and requirement for enabling provisions in the context of WFH. In this context, NASSCOM recently made a representation to Central Board of Direct Taxes and Ministry of Finance to examine  certain recommendations which can help industry plan their operations from a long term basis. Given below is a brief summary of our recommendations on this front: Clarification that expenses reimbursed...

GST: Submission on taxability of import of Free of Cost (FOC) software from Related parties

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Background & Issue: As you may be aware, a number of enquiries have been initiated by GST authorities on companies in the recent past seeking details of cross-border Free of Cost (“FOC”) supply of software between related parties. This has caused quite a stir in the industry given that these enquiries have been initiated during the COVID-19 lockdown where IT/ ITeS companies have been working remotely and already dealing with several other business challenges. Typically, access to software provided by overseas affiliates to Indian companies are for the limited purpose of enabling provision of services back to the overseas affiliate and not for any other purposes. Indian companies access the software only for provision of service under the contract with the affiliate and not ...

Feedback sought: Issues for 2nd meeting of Consultation Committee of GSTN

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As you may be aware, NASSCOM is part of Consultation Committee of GSTN formed on simplification of forms and business processes associated with GST and improvement in the IT System. The second meeting of the commitee is scheduled for 14th July, 2020 to provide feedback/suggestions on the following: GST Portal E-Way Bill Portal In this regard, we have identified certain issues that can be discussed during the meeting (attached). Please let us know if you have any feedback/ suggestions on any these issues or you would like us to put forward any other issue before July 10, 2020. Look forward to hearing from you.  

NASSCOM Public Policy Monthly Newsletter : July 2020

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  Policy Submissions/Representations to the Government   Industry Meeting with the Union Finance Minister NASSCOM organised a meeting on 4 June 2020 with Finance Minister to highlight the industry’s phenomenal effort in enabling a mass transition to Work from Home (WFH), resulting in almost 80-90% employees today working remotely to ensure business continuity. During the meeting, industry participants discussed the focus on tapping opportunities in attracting global IT-ITeS business due to the re-alignment of global supply chains. The discussion, among other things, extended to the industry’s concerns surrounding an extension of income tax holiday under tax laws, issues relating to goods and services tax (GST) (including interpretation of ITeS as Intermediary), labour refo...

Update: NASSCOM-DSCI Feedback on the Personal Data Protection Bill, 2019

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As a part of the consultation process undertaken by the Joint Parliamentary Committee (JPC) chaired by Member of Parliament, Smt. Meenakshi Lekhi, NASSCOM, together with the Data Security Council of India (DSCI) submitted their comments on the Personal Data Protection Bill, 2019 (PDP Bill) on 26 February 2020. The NASSCOM-DSCI submission was prepared based on extensive industry consultation carried out between December 2019 and January 2020. More recently, NASSCOM was invited by the JPC to submit a presentation on its views on the PDP Bill. Accordingly, NASSCOM and DSCI submitted a presentation deck before the JPC on 8 July 2020, highlighting the key points from its February 2020 Submission. In particular, the presentation highlighted the eight foreseeable challenges in the context of the ...

NASSCOM’s Feedback on MeitY’s Draft ITT Handbook & ICP Guide

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On 26 June, NASSCOM submitted its feedback to the Ministry of Electronics & Information Technology (MeitY) on the draft Handbook on Intangible Technology Transfer (ITT) Control (‘draft ITT Handbook’) and the draft Internal Compliance Program (ICP) Guide. Draft ITT Handbook The objective behind the draft ITT Handbook is to make exporters of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items in India aware of their export control obligations. The draft ITT Handbook is based on MeitY’s draft Approach Paper on ITT Control Mechanism, which NASSCOM had reviewed in June last year (link). Our main recommendations on the draft ITT Handbook are the following: Use of consistent terms: There is a need to align definitions and terminology used in the draft ITT Handbo...

Ministry of Finance: Submission requesting for clarification/ guidance on provisions relating to Equalization Levy introduced vide Finance Act, 2020

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As you are aware, latest amendments to EL provisions represent a significant increase in the scope of levy. Now, EL @ 2% is applicable on consideration received/ receivable by non-resident e-commerce operators on e-commerce supply or services made or provided or facilitated by it, effective April 1, 2020. The proposal for imposition of EL was not included in Union Budget 2020-21 unveiled in February 2020. Neither was this proposal discussed or debated in the parliament. Resultantly, the Levy was introduced and passed in both houses of the Parliament without any discussion. Further, given that India is engaged in OECD led process to arrive at global consensus on the approach to tax digital economy, unilateral measures like EL lead to multiple layers of taxation for the same income with no b...

STPI: NASSCOM Recommendations on industry requirements related to Work from Home (WFH)

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Given the available technologies and an impetus from the SARS-CoV-2 pandemic, IT/ITeS companies are now looking at a blended working model with both work from office and work from home (WFH). In this regard, NASSCOM recently made a representation to Government highlighting industry requirements related to units that are operating under Software Technology Parks of India (STPI). Given below is a brief summary of our recommendations made to the Government. Enable facility of working from a place outside the unit permanent: As per the provision 6.08 of the Handbook of Procedure of the Foreign Trade Policy (2015-20), employees of IT and ITeS units based in STPI can WFH. However, as per the process, the units are required to seek permission from the authority for enabling WFH. In addition, the ...