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Taxation and policies in software

August 10, 2009
Taxation and Policies
IT Policy of Indian States
IT for All by 2008
AP ICT Policy 2002 – 2005
The Finance Bill, 2002
No Service Tax on Computer Software Services
Profits Derived from Export of Software (Including Some of IT-eS) are Exempt from Income Tax
Indian Copyright Act
Export Promotion Schemes under EXIM Policy 1997-2002
The EXIM Policy for Software Technology Park Units (STP)
Foreign Investment Policy
Communication Convergence Bill 2000
E-Governance in India
Information Technology Action Plan
Long Term National IT Policy
Electronic Commerce Act, 1998
The Intellectual Property Rights Law
Industrial Policy: Software Licensing
Uniform Domain Name Dispute Resolution Policy
The IT Act 2000
Connectivity Details and Policies of VSNL
IT Policy of Indian States
IT for All by 2008
For enabling a proactive drive for ‘IT for all by 2008’, the  government has decided to set up the base for a rapid spread of IT awareness among the citizens, propagation of IT literacy, networked Government, IT-led economic development, rural penetration of IT applications.
AP ICT policy 2002 – 2005
The ICT Policy augments the sound functioning of the ICT sector to give it a new direction. It promotes growth of the ICT industry in the state and benefits the IT hardware and software industries that includes IT software, IT services and IT Enabled Services and the IT infrastructure industries.
The Finance Bill, 2002
The deduction of export profits under the Income-tax Act, in the Small Industries Development Bank of India   the Income Tax Act has been reduced from 100% to 90%. Also as per this clause, if during the year, more than 51% of shareholding changes in a 100% EOU, STP, EPZ then the company will cease to get Income Tax exemption from that year
No service Tax om computer software services
As per the Ministry of Finance Notification No. 4/99 – Service Tax dated 28 February 1999, taxable service provided to any person by a consulting engineer in relation to computer software development is exempt from the purview of Service Tax.
Profits Derived from Export of Software (Including Some of IT-eS) are Exempt from Income Tax
According to Section 80HHE of the Income Tax Act, computer software and software developed through on-site, offshore and physical exports are exempted subject to various provisions contained in Section 80HHE of the Income Tax Act.
Indian Copyright Act
Under the Indian Copyright Act, 1957 ‘Computer Programme’ has been included in ‘Literary Works’ and there is strict punishment for infringement of copyrights.
Export Promotion Schemes under EXIM Policy 1997-2002
As per the current Export Import Policy, effective for 5 years from April 1, 1997, new capital goods, including computer software systems may be imported without any restriction except to the extent such imports are regulated by the book titled ‘ITC (HS) Classification of Export and Import Items’. Import of the restricted items is allowed against an import licence.
The EXIM Policy for Software Technology Park Units (STP)
The EXIM Policy which came into force on 1st April, 1997 and is valid upto 31st March, 2002 lays down policies related to export of computer software by STPs.
Foreign Investment Policy
The Government of India facilitates Foreign Direct Investment (FDI) and investment from Non-Resident Indians (NRIs) including Overseas Corporate Bodies (OCBs) in STP units. The foreign investment policy provides modalities and procedures for all proposals related to it.
Communication Convergence Bill 2000
Under the present scenario different services like basic telecom, cellular, Internet and satellite television have different licenses and are regulated by different agencies, which hinders bundling of services, like Internet telephony. This Bill provides for the formation of the ‘Communications Commission of India’, which will be made responsible for issuance of licenses and regulating all the communications sector including the infrastructure and the content.
E-Governance in India
E-governance is the ability to give citizens the choice of when and where they access government information and services. Increase in the usage of computers and information technology to decrease the time spent in delivering government services, easier accessibility of government information and services and greater transparency in government operations are some of the key features of e-governance.
Information Technology Action Plan
The Government of India, recognising that the impressive growth the country has achieved since the mid-Eighties in Information Technology is still a small proportion of the potential to achieve, has resolved to make India a Global IT Superpower and a front-runner in the age of Information Revolution. The Government of India considers IT as an agent of transformation of every facet of human life which will bring about a knowledge based society in the twenty-first century. As a first step in that direction, the following revisions and additions are made to the existing Policy and Procedures for removing bottlenecks and achieving such a pre-eminent status for India.
Long Term National IT Policy
The strategic policies for the IT industry, IT Research, Design and Development, IT Human Resource Development, Citizen-IT Interface, Content Creation and Content Industry, Micro Electronics, Mission mode creation of Fibre-optic infrastructure, Financing the IT sector and organizational structure are described in this site.
Electronic Commerce Act, 1998
In order to provide legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, commonly referred to as “electronic commerce”, which involve the use of alternatives to paper-based methods of communication and storage of information, to facilitate electronic filing of documents with the Government agencies and further to amend the Indian Penal Code, the E-commerce Act, has been formulated
The Intellectual Property Rights Law
In India, the Intellectual Property Rights (IPR) of computer software is covered under the Copyright Law. Accordingly, the copyright of computer software is protected under the provisions of Indian Copyright Act 1957. Major changes to Indian Copyright Law were introduced in 1994 and came into effect from 10 May 1995. These changes or amendments made the Indian Copyright law, one of the toughest in the world.
Industrial Policy: Software Licensing
The department of Industrial Policy & Promotion under the Ministry of industry has formulated a policy, which is aimed at serving as a comprehensive guide for prospective investors and entrepreneurs. It incorporates software-licensing policy as an important feature. For convenience of understanding the policy has been categorized into three heads namely: Industrial Policy, Foreign Direct Investment, and Investment by Non Resident Indians Overseas Corporate Bodies.
Uniform Domain Name Dispute Resolution Policy
All registrars in the .biz, .com, .info, .name, .net, and .org top-level domains follow the Uniform Domain-Name Dispute-Resolution Policy (often referred to as the “UDRP”). Under the policy, most types of trademark-based domain-name disputes must be resolved by agreement, court action, or arbitration before a registrar will cancel, suspend, or transfer a domain name.
The IT Act 2000
The much-awaited Information Technology Bill, 1999, has been passed by both the houses of the Parliament and assented by the President. The Gazetted Information Technology Act provides a peripheral framework for the e-commerce regime, by dealing with electronic records, digital signatures, regulation of certifying authorities, digital signature certificates, obligations of subscribers, penalties and adjudication, the cyber regulation appellate tribunal, offences, network service providers, etc.
The Act is set to be armed with more stringent provisions to mete out harsh punishments to cyber terrorists such as hackers and cyber squatters, which would henceforth be tackled by the computer-savvy special teams instead of the khaki-clad police. The Act is expected to fuel the growth of Internet and e-commerce in India.
Connectivity Details and Policies of VSNL
The website has a comprehensive tabulation of policies and connectivity details of VSNL. It elaborates on the procedures involved and customer requirements. There is a know-how for the routes announced, load-sharing, addressing issues, reference to the routing policies used by ISPs like MCI, Worldcom and Sprint to follow the guidelines and proceedings.
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