in Focus MOF Amendments to valuation methods for start-ups under income tax rules In our feedback on draft amendments, we suggested to improve the governing framework of angel tax. Our specific recommendations included, adding Netherlands, UAE and Singapore to the list of safe-harbour countries, exempting investments made by foreign group companies into an Indian group company from the applicability of angel tax and framing SOP in consultation with stakeholders. Read More

REPRESENTATIONS RBI Nasscom’s feedback on RBI’s draft Master Direction on Cyber resilience and digital payment security controls Our feedback on the draft directions highlighted that: (a) Requirements must allow industry the flexibility to decide their preferred method of achieving stronger cybersecurity, (b) unnecessary duplication of compliances must be avoided, (c) onerous requirements must be made feasible, (d) industry should be given more time to comply with the draft Master Directions and (e) where ambiguous, requirements should be clarified. Read More DTD Nasscom’s feedback on draft Motor Vehicle Aggregators and DSP Scheme 2023 In our feedback to the draft scheme, we highlighted that: (a) targets for onboarding EVs by aggregators should be mapped to the to the state of the availability of EVs and of supporting infrastructure in Delhi and (b) licence fee structure should be based on the Central Government’s Guidelines. Read More TRAI Assignment of spectrum for space-based communication services In our feedback to the TRAI consultation paper, we submitted that satellite spectrum unlike terrestrial spectrum can be shared amongst multiple service providers without diminishing what is available to others. Due to its non-exclusive nature, existing well-established administrative route is the most efficient method of allocation. We also highlighted that auction route may impact India’s space sector by creating entry barriers, limiting the number of players, hampering innovation and not aligning with global practices. Read More

DIALOGUE & DISCUSSION GSTN Implementation of e-commerce parity issue for online sellers We organised a meeting with GSTN on June 19, wherein a demonstration of the proposed enrolment mechanism for unregistered sellers on GST portal was given by the GSTN team. The purpose of the meeting was to discuss potential changes to the GST portal on enrolment of unregistered sellers in order for them to supply through e-commerce operators. For more information, kindly write to policy@nasscom.in. Export Control Event on intangible transfers of strategic technology and emerging technology We were invited by the US-Export Control and Border Security program to present the booklet on 'Elements of an Effective Internal Compliance Programme for Export of Dual-Use Items’ published by nasscom in December 2022. The Indian industry was invited to the event and covered discussions on how different countries are managing export control compliance in intangible technology transfers, trends in managing export of emerging technologies and experience of the industry in complying with export control obligations. For more information, write to policy@nasscom.in. Industry Roundtable on digital payments: balancing innovation and consumer protection in India for Maharashtra region nasscom conduct a roundtable to discuss industry’s views on increasig consumer protection in a world of increasing digital payments. Industry’s feedback emphasised that: (a) consumer’s trust in the digital payments ecosystem is of prime importance, (b) a conducive consumer interface drives the growth of digital payments, (c) raising consumer awareness on common practices being adopted by fraudsters is a priority, and (d) technology can be leveraged better to improve authentication of transactions, thereby reducing frauds. For more information, write to policy@nasscom.in. Consumer Protection Consultation on Dark Patterns in online interfaces We highlighted the importance of raising consumer awareness in protecting consumers from such practices and supported the government’s proposal to adopt a self-regulatory approach. We also highlighted various tools being sued by other countries, such as, the 'rip-off, tip-off-campaign’ by the UK government that encourages consumers to report dark patterns to the government. Read More

NEW & UPCOMING TRAI Call for inputs: Consultation paper on regulatory sandbox in digital communication sector TRAI has released a Consultation paper on Encouraging Innovative Technologies, Services, Use Cases, and Business Models through Regulatory Sandbox in Digital Communication Sector. TRAI has also provided draft framework for regulatory sandbox and is soliciting comments on the same. The last date to provide comments to TRAI is July 17, 2023. In case you are interested in the subject, please provide your inputs by July 10, 2023 by writing to us at policy@nasscom.in. Read More DGEP Call for inputs: 17th all India customs consultative group meeting DGEP is in the process of scheduling the 17th All India Customs Consultative Group (CCG) meeting in July/ August 2023. In order to prepare the agenda for discussion, they have invited inputs from nasscom. These inputs specifically have to be different from the ones discussed extensively in earlier meetings. In case you have any inputs, please send them to us at policy@nasscom.in.

OTHER UPDATES DGFT Amendments to the policy for export of Drones for civilian end-uses DGFT liberalised and simplified the policy for export of drones from India. In line with nasscom’s suggestions, the payload capacity and range limit of drones that don’t require an individual export licence has been increased. A bulk-licence for exporting certain less-sensitive drones has also been introduced. In line with the objectives of the Foreign Trade Policy, this is a positive step towards facilitating export of high-tech items from India. Read More MOHFW Anti-tobacco warning mandate for OTTs The MOHFW issued the Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Amendment Rules, 2023. These rules mandate OTT streaming platforms to display anti-tobacco warnings on screen. Read More MEITY Guidelines on information security practices for Government entities for safe & trusted entities The CERT-IN has released a set of guidelines for all ministries, government institutions, public sector enterprises and other agencies. These are intended to be a baseline document for cybersecurity measures and controls within such entities. Read More

List of Acronyms AI Artificial Intelligence CBDT Central Board of Direct Taxes CBIC Central Board of Indirect Taxes and Customs CERT-IN Indian Computer Emergency Response Team DGEP Directorate General of Export Promotion DGFT Directorate General of Foreign Trade DPIIT Department for Promotion of Industry and Internal Trade DSP Delivery Service Provider DTD Delhi Transport Department EV Electric vehicle GST Goods & Service Tax IT Information Technology MEITY Ministry of Electronics & Information Technology MOF Ministry of Finance MOHFW Ministry of Health and Family Welfare MCA Ministry of Corporate Affairs RBI Reserve Bank of India SEBI Securities Exchange Board of India

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