According to a statement, the Noida Special Economic Zone Authority has extended the work from home permit for IT personnel until June 30, 2022, from the earlier deadline of December 31, 2021, due to the fast spreading Omicron version of the Covid-19 virus. The IT-BPM business association applauded the decision, since it had been working with multiple ministries to expand WFH licenses.
“In light of the Covid-19 pandemic and the likely spread of the Omicron variant, and in continuation of this office’s earlier circular… it has been decided to extend the WFH permission to all IT/ITES SEZ units under the jurisdiction of Development Commissioner, Noida SEZ, until 30.6.2022 or until any further order, whichever is earlier,” said a Noida SEZ statement.
The $191 billion IT industry, backed by advocacy organization Nasscom, has been looking for a permanent work-from-anywhere arrangement for units within the SEZ, which exports over 60% of IT services. The government has already loosened rules for the business under the Department of Telecom’s Other Service Provider (OSP) guidelines (DoT).
Units in the SEZs, on the other hand, are still dealing with uncertainty.
“We appreciate the Noida SEZ authorities extending the work from home timeframes for ITES units to 30.6.2022,” NASSCOM remarked on Twitter.
The sector is seeking clarification and modification of the SEZ laws and related tax processes so that it may adopt a long-term blended work model with remote working as a significant component, particularly in light of the country’s second Covid-19 wave, which is currently underway.
The commerce and industry ministry has already eliminated the need for inspections in the case of debonding of IT/ITeS units in SEZs, allowing them to opt for simple duty payment without inspection if they produce all relevant import and other goods documents to establish their identity and avoid the need for physical inspection of duty-free assets.
While Rule 43 of the SEZ Rules permits enterprises to allow workers to work from home if it meets their needs, the sector is seeking clarification on whether WFH may be authorized on a long-term or permanent basis.
The sector also wants to know if services provided by SEZ personnel while working for WFH would be regarded the same as those provided by SEZs and will be eligible for tax exemption under the Income Tax Act of 1961.
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Article Credits –
economictimes.indiatimes.com
