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NASSCOM PUBLIC POLICY HIGHLIGHTS, VOL 6, ISSUE 5, MAY 2024
NASSCOM PUBLIC POLICY HIGHLIGHTS, VOL 6, ISSUE 5, MAY 2024

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nasscom Public Policy Monthly Mailer | Volume 6, Issue 5 | May 2024
 
 
focus in Focus
 
 
 
 
 
 
MoF  
Meetings on GST, Corporate Tax and Transfer Pricing issues
We, along with the industry, held detailed discussions with the senior officials of Ministry of Finance on April 26 and 27 on key measures to improve ease of doing business under GST and corporate tax and also increase the global competitiveness of India’s transfer pricing regime.
 
GST:
 
 
 
Bullet Review of the concept of intermediary services under the GST which results in levy of GST on exports and challenges in cross border HO-BO operations.
Bullet Concerns with respect to levy of GST on share-based payment to employees, free of cost supply of intangibles, etc.
Bullet Need for rationalising the rate of TCS to ease working capital for sellers on ecommerce, enabling the concept of virtual place of business for sellers tagged to the locations of the warehouses of the e-commerce operator, where the goods are stored.
 
 
Corporate Tax:
 
 
 
Bullet Resolution of operational issues related to faceless assessment and delay in disposal of appeals at higher levels.
Bullet Addressing challenges of compliance with Angel Tax provisions for the start-ups as well as the need to further ease the taxation of ESOPS.
Bullet EoDB issues for the MSMEs.
 
 
Transfer Pricing:
 
 
 
Bullet Expanding the scope of the safe harbour regime by removing the threshold of Rs 200 crore of annual cross border trade and reducing the prescribed profit margins to bring them in line with global trends.
Bullet Reducing the time taken to conclude the APAs.
 
 
These topics, along with several others, formed the core agenda of the discussion, reflecting the pressing need for streamlined tax policies and resolutions to long-standing complexities in the taxation landscape. The suggestions were well received by the ministry and we will be following up with them for suitable next steps.
 
read more Read More
 
 
 
 
 
 
representations SUBMISSIONS AND REPRESENTATIONS
 
 
 
 
 
 
TRAI  
Formulation of National Broadcasting Policy
We responded to the Consultation Paper on "Inputs for formulation of National Broadcasting Policy-2024" and highlighted the differences in broadcasting and OTT services and reiterated our position that it would not be appropriate to deal with both of them under the National Broadcasting Policy. If Government of India wants to create a policy for OTTs, it should be dealt under a separate joint policy initiative by MeitY and MIB. This is in sync with our earlier feedback on the pre-consultation paper.
 
read more Read More
 
 
 
 
 
 
discussion DIALOGUE & DISCUSSION
 
 
 
 
 
 
MOLE  
Meeting with Secretary
 
Meeting with Secretary
 
Nasscom, along with the industry, had an interaction with the Secretary, MOLE and her team on April 25, 2024. We discussed various EoDB issues for the IT-BPM sector and plan to work closely with MOLE on the implementation of the Labour Codes. We also presented a copy of the Handbook on Labour Codes to the Secretary, MOLE. The Handbook has been made in collaboration with our knowledge partner, Nishith Desai Associates, to serve as a ready reference guide for CXOs and public policy professionals highlighting key changes in the Labour Codes, with a particular focus on the IT-BPM sector.
 
read more Read More
 
 
 
   
 
 
 
Industry  
Complying with the DPDP Act: Examining Industry Perspectives
 
Complying with the DPDP Act: Examining Industry Perspectives
 
We hosted a webinar on "Complying with the Digital Personal Data Protection Act: Examining Industry Perspectives" on April 25, 2024. We were joined by legal experts from Trilegal. The webinar provided a practical guide and primary steps to initiate compliance with the DPDPA. The discussion provided insights on specific data processor obligations, navigating the employment exemption under the Act, and application of the Act on the GCC industry, among others.
 
 
 
   
 
 
 
Karnataka Govt  
Meeting with Karnataka IT Department on GCC policy
We met officials of Karnataka IT department to discuss the state GCC policy along with representatives from the Industry. During the discussion, we gave an overview of how the GCCs are growing in India and suggestions on policy imperatives required for their future growth. These included infrastructure and skill development, fiscal incentives, etc.
 
 
 
   
 
 
 
Industry  
New Member Connect
 
New Member Connect New Member Connect
 
Nasscom membership team organised the new member orientation and networking meet on April 30, 2024. Over 50 new members explored initiatives in Policy, GTD, Insights, DeepTech, and Apprenticeships, learning about diverse engagement opportunities. From the policy team, Ashish Aggarwal presented the working of the policy team, key areas of focus, impacts created and engagement initiatives.
 
 
 
   
 
 
 
Industry  
Roundtable on Space Tech
 
Roundtable on Space Tech
 
On April 20, 2024, we, along with nasscom Deep Tech start-up team, in partnership with ISpA, organised a closed-door roundtable to gather insight into the challenges faced by start-ups in SpaceTech ecosystem. The roundtable saw participation of diverse representatives from industry, legal fraternity, academia, and INSPAC-e. Start-ups highlighted several policy issues in the space sector, such as, the lack of adequate standards for the sector, difficulties in obtaining access to testing infrastructure, and the long-time taken in completing procurement process.
 
read more Read More
 
 
 
 
 
 
upcoming NEW & UPCOMING
 
 
 
 
 
 
RBI  
Draft Directions for regulation of PA
RBI has published two draft directions on regulation of PAs: (1) Draft Directions for regulation of PA - Physical Point of Sale, and (2) Draft amendments to existing directions on PA related to due diligence of merchants, operations in escrow accounts, agents of PAs etc. To send your inputs on these, please write to policy@nasscom.in by May 8, 2024.
 
read more Read More
 
 
 
   
 
 
 
RBI  
Draft Guidelines on Digital Lending - Transparency in Aggregation of Loan Products from Multiple Lenders
RBI has published draft Guidelines to enable transparency in aggregation of loan products from multiple lenders. The Guidelines mandate compliance with a view to enable borrowers to have prior information about the potential lenders to be able to make an informed decision. To send your inputs on these, please write to policy@nasscom.in by May 10, 2024.
 
read more Read More
 
 
 
 
 
 
update OTHER UPDATES
 
 
 
 
 
 
RBI  
Evaluating Linguistic Complexity of RBI's Regulations
Published in RBI's April 2024 Bulletin, this article gauges trends in complexity of language used in domestic banking sector regulations issued by Department of Regulation, RBI, from 2017 to 2022. The analysis suggests that regulations require a graduate or post-graduate degree for understanding, which is generally the education level of commercial bank employees. The article concludes that going ahead, with more disruptions and innovation, regulation may become more complex and tools to address complexity may become easily accessible to the regulators.
 
read more Read More
 
 
 
 
   
 
 
 
State Governments  
Exemption from full-day mandatory closure of operations for general election
Government of Telangana and Government of Andhra Pradesh have notified an exemption for the IT/ITeS industry from mandatorily closing operations for full-day for exercising franchise for the general elections, owing to its continuous operations. It was clarified that a holiday may be declared only for the shift during which the poll is to be conducted (from 7.00 am to 6.00 pm). Additionally, Government of Maharashtra has notified an exemption for critical services from full-day mandatory closure during general elections.
 
 
 
 
 
 
List of Acronyms
 
DPDPA Digital Personal Data Protection Act
GCC Global Capability Centre
GST Goods and Services Tax
ISpA Indian Space Association
IT Information Technology
 
MEITY Ministry of Electronics and Information Technology
MOLE Ministry of Labour and Employment
MOF Ministry of Finance
PA Payment Aggregator
RBI Reserve Bank of India
 
 
 
 
 
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Email us at policy@nasscom.in.
 
 
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