in Focus MOF Pre-budget Memorandum 2024-25 Given February 1, 2024, will be an interim budget and the full budget will be presented after the new government assumes office, our recommendations focusses on: 1. Ease of doing business under corporate taxes a) Reducing compliance burden and providing tax certainty b) Effective management of tax litigation 2. Ease of doing business under Transfer Pricing One of our key recommendations is to enable direct listing in India of foreign incorporated Indian origin start-ups without incurring huge tax liability. Read More MEITY Consultation on draft rules under the DPDPA 2023 MeitY conducted a consultation meeting with industry representatives on December 20, 2023 on the draft rules under DPDPA 2023. The key draft rules discussed during the consultation were on notice and consent, breach reporting, retention limitation, rights, and parental consent. It was announced that the draft rules will be released for public consultation shortly. MeitY had discussed that a short consultation period of one week will be given; we made a representation requesting a minimum of 30 days so industry-wide feedback can be given. If this is of relevance to you, please reach out to us at policy@nasscom.in.

SUBMISSIONS AND REPRESENTATIONS RBI Feedback on the PA-CB Regulation Our feedback to the RBI sought adoption of a risk-based approach to KYC and extending the implementation timelines to ensure minimal disruption to import-export transactions. We also sought clarifications on certain clauses such as, whether compliance with PA/PG Guidelines must be demonstrated before getting the PA-CB authorisation, whether net-worth requirement is to be fulfilled at an entity level or activity level, etc. Read More DoCA Product Safety pledge by e-Commerce Platform Nasscom is a part of the committee constituted by DoCA to prepare a product safety pledge to be undertaken voluntarily by e-commerce platforms. Our suggestions to the committee aimed at drafting the pledge in a manner that can be demonstrably complied with by signatories and ultimately effectively achieve the objective of the safety pledge. The safety pledge is likely to be released by the government on National Consumer Day, on December 24, 2023. For more information, kindly write to garima@nasscom.in. GST Request for clarification on valuation of corporate guarantees between related parties under CGST Rules We have made a submission to GST policy wing requesting for clarifications on a) non-applicability of valuation norms specified under Rule 28 of CGST Act, 2017 to corporate guarantees provided before October 26, 2023; b) treatment of guarantee given to group company outside India, where amount received is lower than consideration agreement on account of transfer pricing adjustments; c) receipt/ payment of corporate guarantee over multiple years, amongst others. Read More TRAI Feedback on consultation paper on digital transformation through 5G ecosystem We responded to the TRAI consultation which sought inputs on multiple issues including how to fast-track adoption of 5G, 5G enabled IoT, metaverse and their associated regulatory considerations. Based on the industry feedback, our primary recommendation was to build public private partnership to develop and implement 5G use cases (like IoTs), improve access to right of way, and to address risks like data privacy or cybersecurity from the use of IoT or metaverse, by evaluating the existing regulatory measures and frameworks. Read More DGFT Feedback on GAICT and Recommendation for a Bulk-License for Cryptography We submitted recommendations to DGFT to further streamline India's export control compliance regime for the benefit of the industry's EoDB. Our submission focused on (a) expanding the scope of items eligible for GAICT by including low risk items that are frequently traded withing SCOMET category 8, and (b) bulk licensing policy for cryptographic information security items under SCOMET Category 8A5 Part 2, with certain safeguards like documentation proofs, periodic post-shipment reporting requirements. Read More

DIALOGUE & DISCUSSION CII and CWS Discussions on WTO's Customs Moratorium On December 13 & 18, 2023, nasscom participated in 2 discussions organised by CII and CWS respectively. We highlighted the industry’s feedback on the need for international-level clarity on customs-related compliances in case the moratorium is removed. For more information, write to garima@nasscom.in. NEW & UPCOMING Ministry of Information and Broadcasting Call for Inputs on the Broadcasting Services (Regulation) Bill, 2023 The deadline for submitting comments on the Broadcasting Services (Regulation) Bill 2023 has been extended till 15th January 2024. In case you are interested in the subject, please provide your inputs by writing to sudipto@nasscom.in before January 10, 2024. DGFT Invitations to The National Conference on Strategic Trade Controls, 2024 The DGFT is organising a national conference on strategic trade controls on 30th January 2024 in New Delhi. The registration link is available here. For more information, write to priyanshi@nasscom.in. SEBI Call for inputs: SEBI Consultation paper on verification of market rumour SEBI has released a consultation paper to suggest amendment to SEBI Regulations with respect to verification of market rumours under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. In case you have any feedback/ inputs, please write to tejasvi@nasscom.in before January 10, 2024.

OTHER UPDATES DoCA Guidelines for Prevention and Regulation of Dark Patterns on Online Platforms On December 1, 2023, DoCA published the Guidelines for Prevention and Regulation of Dark Patterns. 13 specific dark patterns have been identified, including, false urgency, subscription trap, basket sneaking, forced action, drip pricing etc. Nasscom was a part of the task force set-up by the government to give suggestions for the formulation of the dark pattern guidelines. Read More MEITY Advisory on compliance with the IT Rules focusing on deepfakes MeitY has issued an advisory to digital intermediaries, directing compliance with existing IT rules, particularly focusing on the prevention of misinformation through AI-generated deepfakes. The advisory mandates clear communication of prohibited content, specified under Rule 3(1)(b) of the IT Rules, to users, along with highlighting penal provisions for violations. Read More

List of Acronyms CII Confederation of Indian Industry CWS Centre for WTO Studies DGFT Director General of Foreign Trade DoCA Department of Consumer Affairs DPDPA Digital Personal Data Protection Act EoDB Ease of Doing Business GST Goods and Services Tax IT Rules Information Technology Rules 2021 MEITY Ministry of Electronics and Information Technology MOF Ministry of Finance MIB Ministry of Information and Broadcasting PA Payment Aggregator PA-CB Payment Aggregator - Cross Border PG Payment Gateway RBI Reserve Bank of India SEBI Securities and Exchange Board of India TRAI Telecom Regulatory Authority of India WTO World Trade Organisation

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