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in Focus
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MoF
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Meetings on GST, Corporate Tax and
Transfer Pricing issues
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We, along with the industry, held
detailed discussions with the senior
officials of Ministry of Finance on
April 26 and 27 on key measures to
improve ease of doing business under GST
and corporate tax and also increase the
global competitiveness of India’s
transfer pricing regime.
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GST:
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Review of the concept of
intermediary services
under the GST which
results in levy of GST
on exports and
challenges in cross
border HO-BO operations.
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Concerns with respect to
levy of GST on
share-based payment to
employees, free of cost
supply of intangibles,
etc.
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Need for rationalising
the rate of TCS to ease
working capital for
sellers on ecommerce,
enabling the concept of
virtual place of
business for sellers
tagged to the locations
of the warehouses of the
e-commerce operator,
where the goods are
stored.
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Corporate Tax:
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Resolution of
operational issues
related to faceless
assessment and delay in
disposal of appeals at
higher levels.
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Addressing challenges of
compliance with Angel
Tax provisions for the
start-ups as well as the
need to further ease the
taxation of ESOPS.
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EoDB issues for the
MSMEs.
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Transfer Pricing:
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Expanding the scope of
the safe harbour regime
by removing the
threshold of Rs 200
crore of annual cross
border trade and
reducing the prescribed
profit margins to bring
them in line with global
trends.
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Reducing the time taken
to conclude the APAs.
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These topics, along with several others,
formed the core agenda of the
discussion, reflecting the pressing need
for streamlined tax policies and
resolutions to long-standing
complexities in the taxation landscape.
The suggestions were well received by
the ministry and we will be following up
with them for suitable next steps.
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DIALOGUE & DISCUSSION
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MOLE
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Meeting with Secretary
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Nasscom, along with the industry, had an
interaction with the Secretary, MOLE and
her team on April 25, 2024. We discussed
various EoDB issues for the IT-BPM
sector and plan to work closely with
MOLE on the implementation of the Labour
Codes. We also presented a copy of the
Handbook on Labour Codes
to the Secretary, MOLE. The Handbook has
been made in collaboration with our
knowledge partner, Nishith Desai
Associates, to serve as a ready
reference guide for CXOs and public
policy professionals highlighting key
changes in the Labour Codes, with a
particular focus on the IT-BPM sector.
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Industry
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Complying with the DPDP Act: Examining
Industry Perspectives
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We hosted a webinar on "Complying with
the Digital Personal Data Protection
Act: Examining Industry Perspectives" on
April 25, 2024. We were joined by legal
experts from Trilegal. The webinar
provided a practical guide and primary
steps to initiate compliance with the
DPDPA. The discussion provided insights
on specific data processor obligations,
navigating the employment exemption
under the Act, and application of the
Act on the GCC industry, among others.
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Karnataka Govt
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Meeting with Karnataka IT Department
on GCC policy
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We met officials of Karnataka IT
department to discuss the state GCC
policy along with representatives
from the Industry. During the
discussion, we gave an overview of
how the GCCs are growing in India
and suggestions on policy
imperatives required for their
future growth. These included
infrastructure and skill
development, fiscal incentives, etc.
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Industry
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New Member Connect
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Nasscom membership team organised
the new member orientation and
networking meet on April 30, 2024.
Over 50 new members explored
initiatives in Policy, GTD,
Insights, DeepTech, and
Apprenticeships, learning about
diverse engagement opportunities.
From the policy team, Ashish
Aggarwal presented the working of
the policy team, key areas of focus,
impacts created and engagement
initiatives.
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Industry
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Roundtable on Space Tech
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On April 20, 2024, we, along with
nasscom Deep Tech start-up team, in
partnership with ISpA, organised a
closed-door roundtable to gather
insight into the challenges faced by
start-ups in SpaceTech ecosystem.
The roundtable saw participation of
diverse representatives from
industry, legal fraternity,
academia, and INSPAC-e. Start-ups
highlighted several policy issues in
the space sector, such as, the lack
of adequate standards for the
sector, difficulties in obtaining
access to testing infrastructure,
and the long-time taken in
completing procurement process.
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NEW & UPCOMING
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RBI
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Draft Directions for regulation of
PA
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RBI has published two draft
directions on regulation of PAs:
(1) Draft Directions for
regulation of PA - Physical Point
of Sale, and (2) Draft amendments
to existing directions on PA
related to due diligence of
merchants, operations in escrow
accounts, agents of PAs etc. To
send your inputs on these, please
write to
policy@nasscom.in
by May 8, 2024.
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RBI
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Draft Guidelines on Digital
Lending - Transparency in
Aggregation of Loan Products from
Multiple Lenders
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RBI has published draft Guidelines
to enable transparency in
aggregation of loan products from
multiple lenders. The Guidelines
mandate compliance with a view to
enable borrowers to have prior
information about the potential
lenders to be able to make an
informed decision. To send your
inputs on these, please write to
policy@nasscom.in
by May 10, 2024.
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OTHER UPDATES
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RBI
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Evaluating Linguistic
Complexity of RBI's
Regulations
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Published in RBI's April 2024
Bulletin, this article gauges
trends in complexity of
language used in domestic
banking sector regulations
issued by Department of
Regulation, RBI, from 2017 to
2022. The analysis suggests
that regulations require a
graduate or post-graduate
degree for understanding,
which is generally the
education level of commercial
bank employees. The article
concludes that going ahead,
with more disruptions and
innovation, regulation may
become more complex and tools
to address complexity may
become easily accessible to
the regulators.
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State Governments
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Exemption from full-day mandatory closure of operations for general election
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Government of Telangana and Government of Andhra Pradesh have notified an exemption for the IT/ITeS industry from mandatorily closing operations for full-day for exercising franchise for the general elections, owing to its continuous operations. It was clarified that a holiday may be declared only for the shift during which the poll is to be conducted (from 7.00 am to 6.00 pm). Additionally, Government of Maharashtra has notified an exemption for critical services from full-day mandatory closure during general elections.
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