In Focus

SEZs permitted to set up to 50 bed hospitals for employees and their families On 27 April, Ministry of Commerce (MoC) reiterated its instruction issued in December 2020, stating that upto 50 bed hospital can be set up within the Special Economic Zones (SEZs) units. This step should help industry set up/ expand isolation wards, Covid-19 care centres or other medical facilities in the SEZs. It has also been clarified that no tax benefit or exemption will be allowed for such facility for SEZ and DTA employees and their families (read more).

Submissions and Representations

Implementation of Haryana job reservation law for private sector The Haryana State Employment of Local Candidates Act, 2020, which was due to come into effect from May 1, 2021, is now expected to be implemented once the Covid-19 pandemic is contained. Through the rules, the Government may ease threshold for coverage for employees and exempt start-ups. NASSCOM had earlier made a detailed representation seeking repeal of the law.  E-commerce: Request to enable use of online channels in fight against Covid-19 Considering the various provisional lockdowns being imposed across the country, NASSCOM urged the Government to not impose unnecessary restrictions on e-commerce-based delivery of goods and services. In this regard, we engaged with relevant Central Government departments, including the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Home Affairs, and the State Governments of Maharashtra, Uttar Pradesh, Tamil Nadu, Telangana and Haryana, etc. (read more)  GST: NASSCOM’s White Paper on e-commerce industry’s adherence to place of supply rules and suggestions to improve GST returns In a White Paper submitted to the Chief Commissioner of State Tax, Gujarat, Joint Secretary - Goods and Services Tax (GST) Council and the Principal Commissioner - GST Policy Wing, NASSCOM provided a detailed review of current practices being followed by various e-commerce companies for determination of place of supply under GST. The paper also provides recommendations focussing on procedural and system-based improvements in GST returns that would enable high quality visibility on industry's compliance status to the government (read more). The White Paper was accompanied by a detailed memorandum highlighting key GST issues faced by e-commerce industry which are hampering day-to-day operations and impacting compliances of e-commerce industry (read more).  GST: Request for inclusion of IT/ ITeS and online services under list of goods and services eligible for rebate option The GST Policy Wing has been requested to include IT/ ITeS and Online Information Database Access and Retrieval (OIDAR) in the notified class of taxpayers and also include goods/services provided by IT/ITeS companies in the list of notified goods and services under S. 16(4) of Integrated Goods and Service Tax Act, 2017 (read more)  SEBI: Request for seeking one step approval for appointment and removal of Independent Directors NASSCOM has requested the Securities and Exchange Board of India (SEBI) to provide a one-step approval process for appointment/re-appointment and removal of Independent Directors (IDs) instead of the proposed dual approval process; increase percentage of commission payable and/or limit for the sitting fees instead of offering Employee Stock Option Plans/profit or performance linked commission (read more).  MCA: Request to protect employee privacy and address concerns related to misuse of disclosure norms on employee remuneration We have requested the Ministry of Corporate Affairs (MCA) to amend Companies Act, 2013 to require companies to notify details of employee remuneration only to the remuneration committee and to the Registrar of Companies, instead of disclosing it to the public at large. Further, MCA has been requested to increase attachment limit in Form AOC-4 from 6 MB to at least 15MB (read more).  Labour reforms: Suggestions to various State Governments on their draft labour code rules NASSCOM provided feedback to various State Governments including, Uttar Pradesh, Madhya Pradesh, Punjab, Bihar and Karnataka, on their draft labour code rules. The key focus of the suggestions was to ensure that the rules being drafted by the states were similar to each other and did not impose disproportionate obligations on the industry.  Lockdown & Restriction: Ensure exemption to IT-ITeS sector to support critical projects We have engaged with various State Governments, to permit a minimum required IT-ITeS employees to work from office in order to support critical projects that power essential services across the globe. Based on our request, many states have provided exemption to the IT-ITeS sector on these lines.

Dialogue and Discussion

Maharashtra IT-ITeS Policy: Interaction with Department of Industries In an interaction with the Secretary, Department of Industries, we have suggested that the upcoming IT policy of the state should lay out plans to accelerate growth of Tier II cities as IT hubs and an IT advisory council with participation from government and industry should be formed to guide the implementation of the policy. We have also recommended for separate policies for Data Centres and Engineering Research and Development (ER&D) and adoption of the model Request for Proposal (RFP) for all IT procurement of the State Government.

New and Upcoming

Call for inputs: Creating awareness on Export Control Framework Related to Technology Transfer including Intangible Technology Transfer NASSCOM is preparing a ready reckoner to create awareness among companies and start-ups on India's export control framework related to technology transfers, including Intangible Technology Transfer (ITT). It will be a guiding document for companies that export Indian-origin dual-use technology or items. Share your queries relating to export control regime as applicable to ITT exports, by writing to garima@nasscom.in latest by May 14, 2021 (read more).  Revision of Consumer Protection (e-Commerce) Rules, 2020 recommended by Parliamentary Committee Parliamentary Committee on Subordinate Legislation has, in its Report on Consumer Protection (e-Commerce) Rules, 2020 made various recommendations such as, preventing misuse of consumer data by other countries, legal remedies for unfair trade practices, capping delivery charges etc. NASSCOM is reviewing the implications of these recommendations. Kindly write to garima@nasscom.in to share your inputs/concerns arising out if these recommendations (read more).  Industry Roundtable on compliance with RBI Payments Directives The Reserve Bank of India (RBI) issued two directives on Guidelines on Regulation of Payment Aggregators and Payment Gateways and Framework for processing of e-mandates for recurring online transactions. NASSCOM is planning to discuss industry issues related to compliance with these directives and the way forward. For more details, kindly contact komal@nasscom.in

Other Updates

MCA: Setting up makeshift hospitals and temporary Covid-19 care facilities will be considered as eligible CSR activity MCA recently clarified that spending of funds for setting up "makeshift hospitals and temporary Covid-19 care facilities" would be treated as an eligible Corporate Social Responsibility (CSR) activity under Schedule VII of Companies Act, 2013. The companies may undertake these activities in consultation with state governments, subject to fulfilment of Companies (CSR) Rules, 2014 and the circulars related to CSR issued by MCA (read more).   RBI makes interoperability of Prepaid Payment Instruments (PPIs) compulsory, announces other steps to promote digital payments The RBI made several significant announcements pertaining to promotion of digital payments in its Statement on Developmental and Regulatory Policies. These included, mandatory interoperability of PPIs; permitting cash withdrawal from full-KYC PPIs issued by non-banks; and allowing non-bank entities such as PPI issuers, card networks, white label ATM operators etc., to take direct membership in Centralised Payment System, viz. Real-Time Gross Settlement and National Electronic Funds Transfer (read more).   MCA: Deadline to implement mandatory audit features in accounting software extended to 1 April,2022 MCA has extended the deadline for mandatory adoption of accounting software enabling audit trail, and edit logs for all transactions by one year to April 1, 2022. NASSCOM had made a representation to MCA requesting for deferment of timelines for implementation of Notification No. GSR 205 (E), which require companies to adopt accounting software having the feature of audit trail (read more).

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