NASSCOM : Public Policy | Volume 1, Issue 3 | March 2020
In Focus
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NASSCOM-DSCI joint representation on the Personal Data Protection Bill, 2019
NASSCOM and DSCI submitted their joint representation on the Personal Data Protection Bill, 2019 (PDP Bill) before the Joint Parliamentary Committee (JPC) chaired by Smt. Meenakshi Lekhi, MP. The submission benefited greatly from the active participation and engagement with our members in the course of Consultation Series conducted by NASSCOM and DSCI, and the feedback received on the provisions of PDP Bill. Read More
NASSCOM's analysis of the Union Budget 2020-21
NASSCOM closely tracked and analysed the Union Budget 2020-21 presented by the Hon’ble Finance Minister on 3 February 2020. Post the presentation of Union Budget 2020-21, NASSCOM made a representation to the Minister for Communications, Electronics & Information Technology, highlighting key issues. Subsequently, NASSCOM made a representation to the Finance Minister with a detailed post budget Memorandum, which was prepared based on industry feedback. Read More
Policy Events
Bullet Industry-Government interaction on Labour issues
05th February, 2020
NASSCOM organized an industry interaction with the Haryana Government to discuss some of the key concerns of the IT companies in the State. The industry highlighted the issue pertaining to excessive delay in securing permission for engaging women in night shifts, contract labour approvals and other labour related challenges. The meeting which was attended by senior officials from Haryana IT and Labour department saw participation from 15 industry leaders.
Bullet First Meeting of the Data Center Policy Taskforce
26 February, 2020
NASSCOM organized the first meeting (via conference call) of the Data Center Policy Taskforce - a forum of senior industry leaders, mandated with the responsibility of shaping NASSCOM's recommendation on the Data Centre Policy. In this meeting, the taskforce deliberated on the various suggestions received from the industry to help promote setting up of Data Centers in India and provided its view on the aspects that needs further study.
Bullet Policy Roundtable @ NTLF2020: Global Data Regulation - Geopolitics and Trade
12 February, 2020
As a part of the 28th edition of the NASSCOM Technology and Leadership Forum (NTLF), NASSCOM organized a closed-door roundtable on the theme of "Global Data Regulation-Geopolitics and Trade." The discussion was pivoted around observable megatrends in geopolitics, i.e. the initiation of a shift in control over data between corporations and the state, a shift from multilateralism to bilateralism in international trade negotiations,
and an increasing number of barriers to free trade, that are nudging jurisdictions towards adopting protectionist measures; and their impact on global trade, data flows and talent flows. The roundtable was kicked off with an opening address by Mr. Gopalakrishnan S., Additional Secretary, MeitY. The session saw active participation from the industry, as well as representatives of other Governments, including Estonia, Canada, Israel and the United Kingdom.
Bullet Awareness workshops on The Code on Wages, 2019
28 February 2020
Continuing our efforts to generate awareness regarding various provisions of The Code on Wages, 2019 and its impact on IT-BPM industry, NASSCOM organized two awareness sessions for its members in Mumbai and Gurgaon. These workshops were organized in association with Nishith Desai Associates. About 150 members attended these two sessions.
Policy Related Industry Representations
Bullet NASSCOM's Representation on Deferment of implementation date of e-invoice system under GST
28th February 2020
NASSCOM also made a representation to Goods and Services Tax Council (GST Council) highlighting difficulties faced by IT-BPM industry in implementation of e-invoicing system on a mandatory basis from April 1, 2020 for taxpayers whose aggregate turnover exceeds INR 100 crores. Given that Enterprise Resource Planning (ERP) and accounting systems operate at a global level, and various businesses have their own nuances in terms of the application development process and business model requirements, NASSCOM has requested the GST Council to defer the implementation date of the e-invoicing system. Read more
Bullet NASSCOM's representation on treatment of IT enabled Services (ITeS) as "Intermediary" under GST
14th February 2020
The Authority for Advance Ruling. Maharashtra (AAR Maharashtra), in the case of Vserv Global, held that specific back office support services rendered by the applicant qualified as 'intermediary services', as the activities performed were in the nature of 'arranging/ facilitating' supply of goods or services between overseas company and its customers in India. The decision resulted in denying export status to back-office operations in India, making them uncompetitive as a result of additional GST cost of 18% of the value of services. Given this, NASSCOM made a representation to Chairman, Central Board of Indirect Taxes and Customs (CBIC) requesting for resolution of issues around 'intermediary services' for Information Technology - IT Enabled Services (IT-ITeS) sector Read More
Bullet NASSCOM Response to TRAI Consultation Paper on Traffic Management Practices (TMPs) and Multi-Stakeholder Body (MSB) for Net Neutrality
13th February 2020
NASSCOM recently made its submission on the Telecom Regulatory Authority of India (TRAI)'s Consultation Paper on Traffic Management Practices (TMPs) and Multi-Stakeholder Body (MSB) for Net Neutrality. Representing the concerns of large bandwidth users, NASSCOM highlighted the need to ensure transparency and accountability in the adoption of TMPs by introducing well-defined categories of exemptions based on legitimate network management objectives; the need to have well-functioning detection and enforcement mechanisms-along the lines followed by regulators in other jurisdictions such as UK and the EU; and the need to eliminate any potential conflicts of interest in the composition of the MSB.Read more
Bullet Representation on Importation of Goods under 'Others' category
20th February 2020
NASSCOM submitted a representation to DGFT requesting for extension of the deadline to provide inputs on import data and suggestion of new Harmonized System of Nomenclature (HSN) codes for goods which are currently imported under 'Others' category (Trade Notice 47/2019-20). In its representation, NASSCOM has emphasized that many IT companies use 'Others' category while importing certain products, only because the products imported are technical in nature with no appropriate HS codes, necessitating the use of the 'Others' category. Read More
Bullet Representation on operationalizing GAICT for re-export of SCOMET items
06th February 2020
NASSCOM made a representation to DGFT requesting that necessary guidelines to operationalize Public Notice 20/2015-20, titled 'Global Authorisation for Intra-Company Transfer (GAICT) of SCOMET Items/Software/Technology', be issued at the earliest. Under the GAICT scheme, eligible exporters do not require pre-export authorization for re-export of imported SCOMET items, software and technology. Read more
Bullet Submission of Inputs to RBI on Draft Framework for authorisation of a pan-India New Umbrella Entity (NUE) for Retail Payment Systems
25th February 2020
NASSCOM submitted its inputs to the Reserve Bank of India (RBI) on the Draft Framework for authorisation of a pan-India NUE for Retail Payment Systems. The inputs were based on member consultation and internal discussions. NASSCOM is of the view that the draft framework is comprehensive and provides a much-needed competitive boost to the retail payments landscape, especially from the perspective of all the participants in the payment ecosystem for whom the opening up of this market represents several new opportunities Read more
Bullet NASSCOM's submission to SEBI on the Report of Working Group on Related Party Transactions
27th February 2020
With the aim of strengthening regulatory norms in relation to related party transactions undertaken by listed entities in India, the Securities and Exchange Board of India (SEBI) released and sought public comments on the proposals of the Report of Working Group on Related Party Transactions. The report made a list of recommendations which include, inter alia, amendments to certain provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR). Based on feedback from members, NASSCOM submitted its response to SEBI Read more
Bullet Member Consultation on SOFTEX related issues
18th February 2020
NASSCOM met the Joint Secretary, MeitY in the last week of January, to review the applicability of SOFTEX form for software products to strengthen ease of doing business for software product industry under National Policy on Software Products (NPSP 2019). During the meeting, a recommendation to do away with the SOFTEX form for software products was made. NASSCOM has subsequently initiated industry consultations on the issue and will soon make a representation to MeitY on the subject. Read more
Bullet Representation on face masks export ban to DGFT
06th February 2020
NASSCOM made a representation to Directorate General of Foreign Trade (DGFT) in relation to Notification No. 44/2015-20, which imposed a complete prohibition on export of personal protection equipment, including face masks. In its representation, NASSCOM requested DGFT to provide an exception to the ban and allow companies intending to send face masks to their employees working overseas. In line with our suggestion, the DGFT has since issued Notification No. 47/2015-20, on 8th February, exempting surgical masks/disposable masks (2/3 Ply) and all gloves (except NBR gloves) from the earlier export ban. Read more
Policy Engagements
Bullet Meeting with Department of Commerce on the issue of Customs Moratorium on Electronic Transmissions
28th February 2020
NASSCOM had a meeting with the Joint Secretary, Department of Commerce, to discuss the feedback received from the industry on the issue of the extant Customs Moratorium on Electronic Transmissions, which is up for review at the upcoming World Trade Organization (WTO) Ministerial Conference in June 2020. NASSCOM emphasized the changing nature of technology, and the gaps in existing multilateral trade agreements, that has led to a blurring of lines vis-à-vis the classification of products as either goods or services, and their treatment under corresponding agreements (i.e. the GATT and the GATS). In particular, NASSCOM highlighted that should the criteria to distinguish goods from service be related to - (a) tangibility; (b) establishment of ownership rights; and (c) subsequent tradability of a product, then a significant number of India's software service exports could risk being classified as goods, and be made subject to customs duties in the absence of a moratorium. The inputs were well received, and NASSCOM will continue to work closely with the Government and the industry, to shape India's position on the issue at the 12th Ministerial Conference of the WTO at Nur-Sultan in June 2020.
Bullet NASSCOM participated in the first meeting of Consultation Committee of GSTN
05th February 2020
NASSCOM participated in the first meeting of the Consultation Committee of Goods and Services Tax Network (GSTN), which was organised to discuss various issues related to new GST Returns and implementation of the e-Invoice system. The meeting was attended by officials from Ministry of Finance, GSTN and various industry associations. NASSCOM submitted a representation listing out a set of queries related to the E-invoice system and also requested deferment of the implementation date to provide adequate time to the industry to modify their existing ERP system suitably.
Bullet NASSCOM participated in the first meeting of Grievance Redressal Committee in Bangalore to discuss GST issues
18th February 2020
The GST Council, in its 38th meeting, approved constitution of "Grievance Redressal Committee (GRC)" at Zonal/ State level to tackle grievances of taxpayers on GST related issued of specific/ general nature. Accordingly, a GRC has been formed in the State of Karnataka comprising of officials from GSTN, Office of Principal Chief Commissioner of Central Tax along with various industry associations including NASSCOM. The first meeting of the committee was held on February 18, 2020 wherein NASSCOM highlighted some of the key issues being faced by IT-BPM industry. Read more
Bullet Meeting with PF authorities on NEEM Trainees
19th February 2020
NASSCOM, along with representative of industry, met the PF authorities and discussed the issues pertaining to the applicability of PF on the trainees hired under the NEEM Scheme. NASSCOM highlighted that the stipend being paid to the trainees, is in line with the AICTE norms, which clearly stipulates that such amount will not attract any statutory contribution. Hence, there is a need to exempt these trainees from the requirements under the PF law.
Bullet NASSCOM participated in consultation session on the Powers and Functions of the Central Consumer Protection Authority
19th February 2020
NASSCOM participated in a consultation session organized by the Department of Consumer Affairs (DoCA) on the powers and functions of the Central Consumer Protection Authority (CCPA) chaired by the Minister of Consumer Affairs, Shri Ram Vilas Paswan. In the session, NASSCOM highlighted the importance of the CCPA focusing on addressing systemic issues through class action and the need for coordination with sector regulators vested with a similar consumer protection mandate in the discharge of its functions. NASSCOM also emphasized upon the need for ensuring sufficient feedback loops from the market to inform and shape regulation making, and the need for the CCPA to have defined regulatory goals and be subject to independent performance reviews of the same, through an independent assessment office. Further, given the changing nature of consumer transactions, NASSCOM urged the DoCA to leverage technology towards better addressing of consumer protection issues.
Bullet Meeting with DPIIT on draft Patent (Amendment) Rules 2019
24th February 2020
A meeting was convened by the Department of Promotion of Industry and Internal Trade (DPPIT) to discuss the Draft Patent (Amendment) Rules, 2019 and understand stakeholder concerns. NASSCOM participated in the discussion and highlighted concerns related to Statement of Working of Patents in India (Form 27). NASSCOM highlighted that the Form needs to be simplified further and the requirements pertaining t0 sharing information on all related patents should be removed. Further, NASSCOM also requested Patent office to clarify certain terms such as 'approximate value accrued in India'.
Upcoming Events
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The below events that were planned to be held in the month of March, are being postponed to be held in April, due to public health concerns surrounding the ongoing Coronavirus (Covid19) pandemic. The members will be updated of the dates, once finalized.
NASSCOM-DSCI Roundtable on Export Control Framework Related to Intangible Technology Transfer
March 2020, New Delhi
NASSCOM invites the industry to join the Policy Roundtable on Improving India’s Export Control Framework Related to Intangible Technology Transfer. Officials from Ministry of External Affairs, Directorate General of Foreign Trade and Ministry of Electronics and Information Technology will also participate in the roundtable discussion. Contact dagarwal@nasscom.in for more details.
NASSCOM-DSCI roundtable interaction with Members of Joint Parliamentary Committee on Personal Data Protection
March 2020, New Delhi
NASSCOM & DSCI are planning to organise a Policy Roundtable on Data Protection, which will bring together senior executives of the IT-BPM industry and the Members of the Joint Parliamentary Committee that is currently scrutinizing The Personal Data Protection Bill, 2019. This round table will provide a platform for the industry to communicate its view on the various provisions of the bill to the Parliamentarians and help shape a robust data protection regime. Contact jayakumar@nasscom.in and indrajeet@nasscom.in for more details.
Policy Updates
  Corporate Law
Ministry of Corporate Affairs (MCA) releases Consultation Paper on Enhancing audit independence and accountability
The Ministry of Corporate Affairs (MCA) released a consultation paper to examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability. As per the paper, the concept of auditor independence requires the auditor to carry out his or her work freely, with integrity and in an objective manner. However, time and again, audit independence has been questioned, as to whether the auditor is really doing justice to the interest of shareholders and is staying true to the audit profession.

In wake of the recent instances of failure of auditors, the Ministry is of the view that the existing regulatory provisions relating to Audit and Auditors in Companies Act, 2013 and its Rules along with Standard of Auditing need to be reviewed. Read more
  Technology Policy
Cabinet approves the constitution of a 12-member Technology Group
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On 19 February 2020, the Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the constitution of a 12-Member Technology Group (TG) chaired by Principal Scientific Adviser. The members of the Group include, six Secretaries from Technology and Science Departments (other Secretaries might also be invited by TG) and five experts from industry and academia. The TG will examine technologies valuable for the economy and society, and advice on their procurement and deployment in the most efficient manner. Read more
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