Notifications & Circulars

Press Information Bureau

18.07.2019

Civil

Digital Exploitation of Children

MANU/PIBU/1177/2019

"Police" and "Public Order" are State subjects as per the Constitution of India. States/UTs are primarily responsible for prevention, detection, investigation and prosecution of crimes including crimes related to exploitation of children; through their law enforcement machinery. The law enforcement agencies take legal action as per provisions of law against persons involved in digital sexual exploitation/abuse of children. The Information Technology (IT) Act, 2000 has adequate provisions to deal with prevailing cyber crimes. Section 67B of the Act specifically provides stringent punishment for publishing, browsing or transmitting child pornography in electronic form. Further, sections 354A and 354D of Indian Penal Code provide punishment for cyber bullying and cyber stalking against women.

Details of further action taken by the Government are as under:

Ministry of Home Affairs has approved a scheme namely 'Cyber Crime Prevention against Women and Children (CCPWC)' under which an online Cyber Crime reporting portal, (www.cybercrime.gov.in) has been launched to enable public to report complaints pertaining to Child Pornography/Child Sexual Abuse Material, rape/gang rape imageries or sexually explicit content. This portal facilitates the public to lodge complaints anonymously or through Report and track option. Steps have also been taken to spread awareness, issue of alerts/advisories, training of law enforcement agencies, improving cyber forensic facilities etc. These steps help to prevent such cases and speed up investigation. A handbook on Cyber Safety for Adolescents/Students has been released (Copy available on www.cybercrime.gov.in and www.mha.gov.in) and sent to all States/Union Territories for wide circulation. Cyber Crime awareness campaign has been launched through twitter handle (@CyberDost) and radio across the country.

The Ministry of Women and Child Development had enacted the Protection of Children from Sexual Offences Act, 2012 (POCSO Act) as a special law to protect children from offences of sexual assault, sexual harassment and pornography. Section 13 to Section 15 deals with the issue of child pornography.

Section 14 and Section 15 lays down the punishment for using child for pornographic purposes and for storage of pornographic material involving child.

Further Section 28 of the POCSO Act 2012 provides for establishment of Special Courts for the purpose of providing speedy trial of offences under the Act.

Section 43 of the POCSO Act, 2012 provides that the Central Government and every State Government takes all measures to give wide publicity to the provisions of the Act. In accordance with this, MWCD has taken various steps from time to time to create awareness of the provisions of the POCSO Act through electronic and print media, consultations, workshops and training programmes with stakeholders concerned. Further, National Commission for Protection of Child Rights (NCPCR) and State Commission for Protection of Child Rights (SCPCRs) are also mandated to monitor the implementation of the POCSO Act, 2012.

Government has taken a number of steps to be implemented by Internet Service Providers (ISPs) to protect children from sexual abuse online. These include:

Government blocks the websites containing extreme Child sexual Abuse Material (CSAM) based on INTERPOL's "Worst-of-list" shared periodically by Central Bureau of Investigation (CBI) which is the National Nodal Agency for Interpol. The list is shared with Department of Telecommunications (DoT), who then directs major ISPs to block such websites.

Government ordered major Internet Service Providers (ISPs) in India to adopt and disable/remove the online CSAM dynamically based on Internet Watch Foundation (IWF), UK list.

Ministry of Electronics and Information Technology (MeitY) has implemented a major programme on Information Security Education and Awareness (ISEA). A dedicated website for information security awareness (https://www.infosecawareness.in) has also been set up.

Tags : Digital Exploitation Children Cyber crime

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Ministry of Finance

18.07.2019

Commercial

Clarification on doubts related to supply of Information Technology enabled Services (ITeS services)

MANU/GSCU/0034/2019

1. Various representations have been received seeking clarification on issues related to supply of Information Technology enabled Services (hereinafter referred to as "ITeS services") such as call center, business process outsourcing services, etc. and "Intermediaries" to overseas entities under GST law and whether they qualify to be "export of services" or otherwise.

2. The matter has been examined. In view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168 (1) of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as "CGST Act"), hereby clarifies the issues in succeeding paragraphs.

3. Intermediary has been defined in the sub-section (13) of section 2 of the Integrated Goods and Service Tax Act, 2017 (hereinafter referred to as "IGST" Act) as under -

"Intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account."

3.1 The definition of intermediary inter alia provides specific exclusion of a person i.e. that of a person who supplies such goods or services or both or securities on his own account. Therefore, the supplier of services would not be treated as 'intermediary" even where the supplier of services qualifies to be 'an agent/ broker or any other person" if he is involved in the supply of services on his own account.

4. Information Technology enabled Services (ITeS services), though not defined under the GST law, have been defined under the sub-rule (e) of rule 10 TA of the Income-tax Rules, 1962 which pertains to Safe Harbour Rules for international transactions. It defines ITeS services as-

"information technology enabled services" means the following business process outsourcing services provided mainly with the assistance or use of information technology, namely:-

(i) back office operations;

(ii) call centres or contact centre services;

(iii) data processing and data mining;

(iv) insurance claim processing;

(v) legal databases;

(vi) creation and maintenance of medical transcription excluding medical advice;

(vii) translation services;

(viii) payroll;

(ix) remote maintenance;

(x) revenue accounting;

(xi) support centres;

(xii) website services;

(xiii) data search integration and analysis;

(xiv) remote education excluding education content development; or

(xv) clinical database management services excluding clinical trials,

but does not include any research and development services whether or not in the nature of contract research and development services".

5. There may be various possible scenarios when a supplier of ITeS services located in India supplies services for and on behalf of a client located abroad. These scenarios have been examined and are being discussed in detail hereunder:

5.1 Scenario -I:

The supplier of ITeS services supplies back end services as listed in para 4 above. In such a scenario, the supplier will not fall under the ambit of intermediary under sub-section (13) of section 2 of the IGST Act where these services are provided on his own account by such supplier. Even where a supplier supplies ITeS services to customers of his clients on clients' behalf, but actually supplies these services on his own account, the supplier will not be categorized as intermediary. In other words, a supplier "A" supplying services, listed in para 4 above, on his own account to his client "B" or to the customer "C" of his client would not be intermediary in terms of sub-section (13) of section 2 of the IGST Act.

5.2 Scenario -II:

The supplier of backend services located in India arranges or facilitates the supply of goods or services or both by the client located abroad to the customers of client. Such backend services may include support services, during pre-delivery, delivery and post-delivery of supply (such as order placement and delivery and logistical support, obtaining relevant Government clearances, transportation of goods, post-sales support and other services, etc.). The supplier of such services will fall under the ambit of intermediary under sub-section (13) of section 2 of the IGST Act as these services are merely for arranging or facilitating the supply of goods or services or both between two or more persons. In other words, a supplier "A" supplying backend services as mentioned in this scenario to the customer "C" of his client "B" would be intermediary in terms of sub-section (13) of section 2 of the IGST Act.

5.3 Scenario -III:

The supplier of ITeS services supplies back end services, as listed in para 4 above, on his own account along with arranging or facilitating the supply of various support services during pre-delivery, delivery and post-delivery of supply for and on behalf of the client located abroad. In this case, the supplier is supplying two set of services, namely ITeS services and various support services to his client or to the customer of the client. Whether the supplier of such services would fall under the ambit of intermediary under sub-section (13) of section 2 of the IGST Act will depend on the facts and circumstances of each case. In other words, whether a supplier "A" supplying services listed in para 4 above as well as support services listed in Scenario -II above to his client "B" and / or to the customer "C" of his client is intermediary or not in terms of sub-section (13) of section 2 of the IGST Act would have to be determined in facts and circumstances of each case and would be determined keeping in view which set of services is the principal / main supply.

6. It is also clarified that supplier of ITeS services, who is not an intermediary in terms of sub-section (13) of section 2 of the IGST Act, can avail benefits of export of services if he satisfies the criteria mentioned in sub-section (6) of section 2 of the IGST Act, which reads as under -

"export of services" means the supply of any service when,--

(i) the supplier of service is located in India;

(ii) the recipient of service is located outside India;

(iii) the place of supply of service is outside India;

(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and

(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8".

7. It is requested that suitable trade notices may be issued to publicize the contents of this Circular.

8. Difficulty, if any, in the implementation of this Circular may be brought to the notice of the Board. Hindi version will follow.

Tags : Doubts Clarification ITeS services

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Press Information Bureau

17.07.2019

Civil

Cabinet approves Implementation of the Cabinet's decision dated 28th December, 2016 regarding pharmaceutical companies in the public sector - seeking modification therein

MANU/PIBU/1144/2019

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the following decisions:

Modifying the earlier decision dated 28.12.2016 of sale of land of PSUs to government agencies and instead permitting the sale of land as per revised DPE's guidelines dated 14.06.2018; and

Providing budgetary support as loan to the tune of Rs 330.35 cr. for meeting the employees' liabilities (Unpaid salary - Rs. 158.35 cr. + VRS Rs.172.00 cr.) as per following break-up:

a. IDPL - Rs. 6.50cr.

b. RDPL- Rs. 43.70cr.

c. HAL - Rs. 280.15 cr.

(iii) Constitution of a Committee of Ministers for taking all decisions pertaining to closure/ strategic sale of the four Public Sector Undertakings, including the sale of assets and clearance of outstanding liabilities.

Major Impact:

Budgetary support of Rs 330.35 cr. would help in disbursing the unpaid salaries and providing support for VRS of employees of IDPL, RDPL and HAL. The decision would mitigate sufferings of more than 1000 employees of these PSUs; and

Setting up of a Committee of Ministers would expedite in process of implementation of the earlier Cabinet decision dated 28.12.2016 for closure of IDPL and RDPL and strategic sale of HAL and BCPL.

Background:

Cabinet had decided on 28.12.2016 to sell surplus land of Hindustan Antibiotics Limited (HAL), Indian Drugs & Pharmaceuticals Limited (IDPL), Rajasthan Drugs and Pharmaceuticals Ltd. (RDPL) and Bengal Chemicals & Pharmaceuticals Ltd. (BCPL) through open competitive bidding to Government agencies and clear the outstanding liabilities from the sale proceeds. It was decided that after meeting the liabilities, IDPL and RDPL would be closed and HAL and BCPL put up for strategic sale. Department took earnest efforts for sale of surplus land, but could not find buyers, despite issuing tenders more than once. Meanwhile, the Department of Public Enterprises (DPE) has issued revised guidelines on 14.06.2018 in respect of disposal of land of the PSUs. As funds could not be generated through sale of surplus land, the employees in few of the PSUs (HAL and RDPL) could not be paid salaries and VRS scheme floated. As such, it was decided to dispose of the land as per revised DPE's guidelines and seek up-front budgetary support for meeting employees' liabilities.

Tags : Pharmaceutical companies Decision Implementation

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Press Information Bureau

17.07.2019

Civil

Exemption for India's food stock holding from WTO subsidy rules

MANU/PIBU/1147/2019

The decision taken by the General Council of the World Trade Organization (WTO), in November 2014, makes it clear that the mechanism, under which WTO members will not challenge the public stockholding programme of developing Members for food security purposes, in relation to certain obligations under the WTO Agreement on Agriculture, will remain in place in perpetuity until a permanent solution regarding this issue is agreed and adopted. The decision thus protects India's public stockholding programme from any apprehension of breaching its commitments under the WTO Agreement on Agriculture. This decision also includes a commitment to find a permanent solution.

The Nairobi Ministerial Conference of the WTO held in December 2015 reaffirmed, with consensus, the Interim Peace Clause decided during the Bali Ministerial Conference in 2013 and the General Council Decision of 2014 providing perpetual protection to public stockholding programmes of a developing Member for food security purposes from being challenged in relation to certain obligations under the WTO Agreement on Agriculture until a permanent solution is agreed and adopted.

At Nairobi, Members also agreed to work constructively towards achieving a permanent solution. India is a member of G-33, a coalition group of developing Members, and has been making all efforts to negotiate and achieve a positive outcome on the issue of public stockholding for food security purposes.

Tags : Exemption Food stock WTO subsidy rules

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Press Information Bureau

17.07.2019

Civil

Cabinet approves extension of the term of the Fifteenth Finance Commission up to 30th November, 2019

MANU/PIBU/1148/2019

The Union Cabinet chaired by Prime Minister Narendra Modi has approved the extension of the term of Fifteenth Finance Commission up to 30th November, 2019. It will enable the Commission to examine various comparable estimates for financial projections in view of reforms and the new realities to finalise its recommendations for the period 2020-2025.

Background:

The Fifteenth Finance Commission has been constituted by the President on 27tn November, 2017 in ' pursuance of clause (1) of article 280 of the Constitution and Finance Commission (Miscellaneous Provisions) Act, 1951. The Commission was to submit its Report on the basis of its Terms of Reference (ToR) by 30th October, 2019 covering a period of five years commencing from 1st April, 2020.

The constitution of the Commission has been in the backdrop of various major fiscal/budgetary reforms introduced by the Union Government in the past four years like closure of the Planning Commission and its replacement by NITl Aayog, removal of distinction between Non-Plan and Plan expenditure, advancing the budget calendar by one month and passing of the full budget before commencement of the new financial year i.e. on 1st February, introduction of Goods and Services Tax (GST) from July 2017 and New FRBM architecture with debt and fiscal deficit path.

The ToR of the Commission takes into account the above fiscal/budgetary reforms. The task of determining the expenditure and receipts of the Union and State governments based on which the Commission shall make its recommendations is time consuming, as checks for data consistency across time and data sets become challenging.

Tags : Finance Commission Term Extension

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Press Information Bureau

17.07.2019

Civil

Indian Cyber Crime Coordination Centre (I4C) - A 7-Pronged Scheme to Fight Cyber Crime

MANU/PIBU/1153/2019

MHA has rolled out a scheme 'Indian Cyber Crime Coordination Centre (I4C)' for the period 2018-2020, to combat cyber crime in the country, in a coordinated and effective manner. The scheme has following seven components:

(i) National Cyber crime Threat Analytics Unit.

(ii) National Cyber crime Reporting Portal.

(iii) Platform for Joint Cyber crime Investigation Team.

(iv) National Cyber crime Forensic Laboratory Ecosystem.

(v) National Cyber crime Training Centre.

(vi) Cyber crime Ecosystem Management Unit.

(vii) National Cyber Research and Innovation Centre.

The Central Government has launched Cyber crime Reporting Portal to enable citizens to report online content pertaining to Child Pornography (CP)/Child Sexual Abuse Material (CSAM) or sexually explicit content such as Rape/Gang Rape (CP/RGR).

The Central Government has taken steps to spread awareness on cyber crime, issue cyber related alerts/advisories, capacity building/ training of law enforcement officers/judges/prosecutors, improving cyber forensics facilities etc. to prevent cyber crime and expedite investigations.

Police' and 'Public order' are State subjects as per the Constitution of India. States/UTs are primarily responsible for prevention, detection, investigation and prosecution of crimes through their law enforcement machinery. The Law Enforcement Agencies take legal action as per provisions of the law against the reported cyber crimes.

Tags : Scheme Cyber Crime

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Reserve Bank of India

16.07.2019

Banking

Foreign Exchange Management (Deposit) (Amendment) Regulations, 2019

MANU/RFEM/0011/2019

G.S.R.498(E).-- In exercise of the powers conferred by clause (f) of sub-section (3) of Section 6 and sub-section (2) of Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999) and in partial modification of its Notification No. FEMA 5(R)/2016-RB dated April 01, 2016, the Reserve Bank makes the following amendment in the Foreign Exchange Management (Deposit) Regulations, 2016, as amended from time to time, namely :-

2. Short title and commencement.--

(i) These Regulations may be called the Foreign Exchange Management (Deposit) (Amendment) Regulations, 2019.

(ii) They shall come into force with effect from the date of their publication in the Official Gazette.

3. Amendment of the regulations.--

Sub-regulation 3 of regulation 6 including all the words and expressions contained therein shall be deleted.

[F. No. 1/31/EM/2015]

R.K.MOOLCHANDANI, Chief General Manager

Foot Note: The Principal Regulations were published in the Official Gazette vide No. G.S.R. 389(E) dated April 01, 2016 in Part II, Section 3, sub-section (i) and subsequently amended vide G.S.R.1093 (E) dated 09.11.2018.

Tags : Foreign Exchange Regulations

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