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

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

Tejasvi

@tejasvi

July 9, 2020

Public Policy

4145

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 Trade Policy (FTP) and Handbook of Procedures (HBP) many years before the occurrence of COVID-19 pandemic situation. Foreseeing the repercussion and adverse impact of COVID-19 pandemic on IT/ITeS, STPI vide communication No. STPI/HQ/HER/01/2020-21/057 dt. 12/03/2020 had advised all jurisdictional Directors to make the industry /industry associations aware of the rule position regarding work from home. A copy of the same was endorsed to NASSCOM with the request to circulate the same among the member companies.

STPI is continuously encouraging its units to take precautionary measures by enabling their employees to work from home for continuity of business operations in a seamless manner. The provisions enabling work from home are vital ingredients of FTP and would certainly remain in force even after recovery from the current pandemic situation.

Allow units to take-out duty-free assets on permanent basis for the purpose of work from home

STPI response: Para-6.07 of HBP of FTP, inter-alia, permits employees of STP/EHTP units to take equipment (duty / tax free laptop/desktop & video projection systems) out of premised of the unit for working upon by authorized employees. These provisions do not restrict any unit from practising Work from Home for a long term basis. However, these assets belong to a unit /legal entity, the authorized signatory /person of the unit/ legal entity will have the obligation for dealing with such assets (at an appropriate time) and also has a responsibility to safeguarding the Govt. revenue. Hence neither the inclusion of the term ‘permanently’ is of any significance nor the term ‘temporary’ is inducing any limitation. Further, it is felt that industry requires removal of other equipment also for taking out of premises for the purpose of WFH. In this regard, STPI has compiled a list of such equipment based on the inputs of the industry. The same has been shared with MeitY for taking up the same with DGFT for appropriate inclusion in FTP. It has also been proposed that Directors of STPI may be delegated the powers to decide necessity and to allow movement of such equipment outside the unit’s premises for the purpose of WFH for catering the need of the industry in order to maintain continuity and ease of doing business.

Allow reduction in operational area on account of permanent work from home

STPI response: STPI Directors are already authorized for issuing permissions to the units for reduction in operational area. Powers under FTP delegated to STPI Directors have been mentioned in the Papa-6.34 of HBoP. Each STPI directorate has a dedicated statutory services section for the purpose.

Allow movement of duty-free assets on self-declaration basis without the requirement of generation of e-way bill

STPI response: E-way bill in an electronic way bill to be generated by a GST registered person/ entity while for movement of goods (other than exempted item/ category /purpose) above a specific value. It is a mechanism to ensure that goods being transported comply with the GST law and is an effective tool to track movement of goods and check evasion, hence doesn’t fall under purview of STPI. However, a recommendation for taking up the matter with the concerned Ministry for considering the ‘movement of IT assets by STP units for the purpose of work from home be exempted from requirement of e-way bill upon a certificate from jurisdictional Director of STPI is being sent to MeitY.

We hope the above the above responses will provide industry clarity and enable them to plan their operations accordingly.

For any further concerns/ queries, kindly write to deepak@nasscom.in and tejasvi@nasscom.in

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Tejasvi