in Focus MEITY, DGFT Clarifications by DGFT and MEITY on the Import Licence for Laptops, Computers, Servers etc. DGFT and MEITY have informed that a fully digital system for applying for an import license has been put in place. The portal can be accessed from here. We encourage the industry to apply for the license and share feedback that we can take to the government, if any challenges are faced. DGFT and MEITY have also given further clarity: SEZ and STPI units do not need to apply for an import license for covered items. No restrictions on the number/value of items that can be imported is being imposed as of now. The turnaround time for granting an import license is expected to be within 24-72 hours. The above points have been verbally clarified by the government, and our request to publish important clarifications as FAQs for the benefit of the wider industry has been noted by DGFT and MEITY. Read More MoF Challenges faced by non-resident taxpayers in mandatory e-filing of Form 10F Till September 30, 2023, non-resident taxpayers not having PAN in India were exempted from mandatory e-filing of Form 10F. However, with effect from October 1, 2023, such taxpayers are required to e-file form 10F. One of the major issues in filing form 10F by such taxpayers is non-accessibility of e-filing portal of tax department. This is due to the reason that e-filing facility is available only to those taxpayers who have PAN in India. In this regard, we had made a representation to MoF requesting them to do away with mandatory electronic filing of Form 10F for non-resident taxpayers who do not have PAN in India or are not required to obtain PAN under tax laws. There has been no update from the government on this issue. We will continue to advocate with MoF for resolution of this issue. Read More

REPRESENTATIONS OECD Response to consultation paper on Pillar One - Amount A In our submission, we have requested OECD to include distribution of digital products [such as Software as a Service] as part of the framework, berry ratio cap-and-collar approach ratio should be backed by a detailed calculation of interquartile range of results of wholesale distribution activities across industries in a particular country/ region, adopting pricing matrix based on a cluster of jurisdictions viz. Europe, USA, Asia Pacific etc. rather than adopting a single global dataset, amongst others. Read More DPIIT Feedback on Draft Patent (Amendment) Rules, 2023 The DPIIT sought comments on the new Draft Patent (Amendment) Rules 2023. The proposed amendments to Form 27 would enhance ease of doing business and innovation in India. Nasscom submitted recommendations to further enhancing the effectiveness of the proposed changes, like, explicit clarification to ensure Controller will check databases before seeking information from applicants on foreign applications. Read More Start-ups Follow-on submission and meetings on enabling direct listing of foreign headquartered Indian start-ups in India We submitted a follow-on representation to SEBI Chairman, DEA Secretary and MP Jayant Sinha and met with Finance Secretary and member of the Economic Advisory Council to the PM. We highlighted the global precedents that allow for direct listing of foreign companies, and the regulations in India that need amendments to allow for the same. We have also suggested setting-up a taskforce to recommend measures to make direct listing an attractive option for Indian origin foreign start-ups. For more information, kindly write to policy@nasscom.in. Principal Scientific Advisor to the Government of India Nasscom's Feedback on the Draft National Deep-Tech Start-Up Policy On September 22, 2023, we submitted our feedback to the Office of the Principal Scientific Advisor to the Government of India, on the draft National Deep-Tech start-up policy. Our recommendations included extending the recognition period for deep-tech start-ups from 10 to 15 years, eliminating the differentiation between hardware and services deep-tech start-ups etc. Read More

DIALOGUE & DISCUSSION Customs Moratorium Discussion with the Industry on the Customs Moratorium on Electronic Transmissions On September 20, 2023, we organised a virtual closed-door discussion with the industry on the WTO’s Customs Moratorium on Electronic Transmission, with the objective of understanding industry’s views on the impact of the Moratorium and the recent developments on this topic. Read More MEITY Data Protection Series | Implementing India’s new Data Protection Law and Marketing & Advertising The Nasscom public policy team is hosting a series of webinars examining the DPDPA 2023 from different perspectives. In this first episode (held on 22nd September, 2023), we were joined by Nikhil Narendran (Partner, Trilegal) and Shivangi Nadkarni (CEO & Co-founder, Arrka Consulting) who provided an overview of the new law in the context of businesses’ marketing & advertising activities, and discussed various questions raised by the industry. The recording of the webinar can be found here. NEW & UPCOMING MEITY Industry inputs on implementation timeline for DPDPA 2023 Pursuant to the stakeholder consultation held by MEITY outlining their roadmap to implementation of the DPDPA 2023 - we are drafting a representation and would require industry to submit inputs on real use-cases where there is a need for more time for transition/deferred implementation. Please share your inputs with us at policy@nasscom.in. MEITY Draft National Strategy on Robotics MeitY has released the Draft National Strategy on Robotics. The strategy suggests establishing an institutional framework to ensure the efficient execution of the adoption and advancement of AI-enabled technologies across diverse sectors, including healthcare, agriculture, manufacturing, and national security. In case you are interested in the subject, please provide your inputs by writing to us at policy@nasscom.in. Read More TRAI Call for Inputs - TRAI Consultation Paper on Digital Transformation through 5G Ecosystem TRAI has recently released a consultation paper titled Digital Transformation through 5G Ecosystem. The objective of this consultation paper is to identify the policy challenges and suggest the right policy framework for faster adoption and effective utilisation of new technologies for the holistic and sustainable development of the economy driven by 5G ecosystem. In case you are interested in the subject, please provide your inputs by writing to us at policy@nasscom.in.

OTHER UPDATES MoF Notification of amendment to Rule 11UA of Income Tax Rules for valuing investments in startups MoF issued a notification to amend Rule 11UA of Income Tax Rules which prescribes the methodology for valuation of shares for applicability of S.56(2)(viib) of Income Tax Act. The amended rules allow for 10% safe harbour in case of issue of unquoted equity shares and Compulsorily Convertible Preference Shares (CCPS) to account for forex fluctuations, bidding processes and variations in other economic indicators, etc. This amendment is in line with nasscom’s recommendation that the 10% safe harbour should be applicable to issue of CCPS as well. Read More

List of Acronyms AI Artificial Intelligence CERT-IN Indian Computer Emergency Response Team DEA Department of Economic Affairs DoCA Department of Consumer Affairs DSC Digital Signature Certificate DGFT Directorate General of Foreign Trade DPDPA Digital Personal Data Protection Act DPIIT Department for Promotion of Industry and Internal Trade IP Intellectual Property IT Information Technology Income Tax Rules Income Tax Rules, 1962 MEITY Ministry of Electronics & Information Technology MOF Ministry of Finance OECD OECD The Organization for Economic Cooperation and Developmen PAN Permanent Account Number RBI Reserve Bank of India SEBI Securities Exchange Board of India SEZ Special Economic Zones STPI Software Technology Parks of India TRAI Telecom Regulatory Authority of Indi

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