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AKHILAA.S
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hi everyone, Please let me know the legal acts and hr policy applicable to a IT related to call centre. Its urgent
From India, Bangalore
swaswaroop
hello to all the members in this forum Please let me know the legal acts and hr polices applicable to call center.its urgent
From India, Bangalore
octavious
575

Hello

Hope this helps

GUIDELINES FOR SETTING UP CALL CENTRES
  1. The Call Centres are permitted to Indian registered companies on non-exclusive basis.
  2. The Call centers are registered under the under the Other Service Provider (OSP) category as defined in NTP'99.
  3. The validity of this permission is up to 20 years from the date of issue of this letter.
  4. 100% Foreign Direct Investment (FDI) is permitted in Call centers.
  5. The call centers has to ensure that no change in the Indian or Foreign promoters / partners or their equity participation is made without prior approval of competent authority or as per prevailing regulations.
  6. The Call centers can take the resources from any authorized service provider i.e. IPLC from the authorized International Long Distance operators and local leased line from any authorized Service providers.
  7. The Service providers will examine the network diagram and grant resources to the OSP as per the terms and condition of this approval and the prevailing guidelines & policy for the service from where the resources are being taken. Both the Service provider and the OSP will be responsible for any violation in the use of the resources.
  8. The domestic call centres are permitted to be set up, on a separate infrastructure. However, the request of the domestic call centre to run on the existing private networks will be evaluated on case to case basis.
  9. Interconnectivity of two domestic call centres of the same organizations is permissible subject to further approval from <link outdated-removed> .
  10. Interconnectivity of the international with domestic call centre is not permitted.
  11. Interconnection of Call Centres of the same group of company is permissible for redundancy, back up and load balancing subject to the prior written approval from the <link outdated-removed>
  12. In the International Call centers, no PSTN connectivity is permitted at the Indian end. Both inbound and outbound calls are permitted from the International call centers.
  13. Internet and IPLC connectivity is permitted on the same LAN at the Indian end of the International Call Center with the condition that no voice/data traffic shall be permitted from ISP to other destinations via IPLC of the call center.
  14. Internet connectivity is also permitted to Domestic call centers.
  15. In case the company proposes to increase the bandwidth for the approved IPLC, the company can directly approach the authorized ILD for the same and intimate the same within 15 days to <link outdated-removed> . However, in case the company proposes to change the POP or add another POP, the company shall approach <link outdated-removed> for approval.
  16. The International call centers are permitted to interconnect with the "Hot sites", for the purpose of back up and working during disaster at the International call centre location, provided that International Call Centre operators provides the following: -
    1. A dedicated server/router at the hot site pertaining to the International Call Centre.
    2. Local lease lines from the International Call Centre to the respective server dedicated for this International Call Centre at the hot site.
    3. The local leased line from the hot site to the IPLC provider.
    Hot sites can be used by the International Call Centre connected to it, only at the time of the disaster, by requesting the IPLC provider to switch its IPLC towards hot sites and informing the same to the <link outdated-removed> .
  17. International Call Centre of the same Group of Company are permitted to cross map the seats for use during disaster. During normal days, original International Call Centre will use all seats but in case of disaster, cross-mapped seats will be vacated for use of the other International Call Centre and the same will be informed to the <link outdated-removed> .
DOCUMENTS REQUIRED FOR SUBMITTING THE APPLICATION: -

The application can be submitted on the letter-head of the applicant company. Following documents are required along with the application:-

International Call Center
  1. Demand Draft of Rs 1000/- drawn in the name of "Pay & Accounts Officer (HQ), DoT", toward the processing fees.
  2. Address of the locations of the Indian end and foreign end where the IPLC would terminate.
  3. Bandwidth of the IPLC, with justification of Bandwidth requirement.
  4. Number of seats in the Call center.
  5. Memorandum of Article of Association of the Company
  6. Schematic diagram of the Call center layout with complete equipment details
  7. Name of the foreign clients ( in case the company has not tied up with any foreign client this can be given before the start of the service) .
  8. Describe the nature of the business.
  9. Proof of business nature and agreement with other End customer.
Domestic Call Center
  1. Demand Draft of Rs 1000/- drawn in the name of "Pay & Accounts Officer (HQ), DoT", toward the processing fees.
  2. Address of all locations connected with leased lines or where incoming only PSTN lines are terminating.
  3. Bandwidth of the leased lines.
  4. Number of seats in the Call center.
  5. Memorandum of Article of Association of the Company
  6. Schematic diagram of the Call center layout with equipment details
  7. Name of the clients ( in case the company has not tied up with any client this can be given before the start of the service)
The application is to be submitted to the Assistant Director General (OSP),
PIP Cell,
Department of Telecommunications,
Room
12th Floor,
Sanchar Bhavan,
20 Ashok Road,
New Delhi-110 001.
Phone: +91-11-3372075

From India, Mumbai
octavious
575

Hello

Hope this further helps you

Thank You
Octavious

BUDGET 2008-09 : IMPLICATIONS FOR THE INFORMATION TECHNOLOGY COMPANIES

HIGHLIGHTS OF THE BUDGET, AS PASSED BY THE PARLIAMENT, VIS-A-VIS INFORMATION TECHNOLOGY SECTOR
  1. The 100% tax exemption available to 100% Export Oriented Units operating under the Software Technology Parks Scheme, under Section 10B of the Income tax Act, 1961, has been extended till March 31, 2010, i.e. for the financial year ending March 31, 2010. Though the Budget proposals as tabled in the Parliament had not talked about the extension of the tax holiday beyond March 31, 2009 (the originally scheduled date of expiry of the tax holiday), the amendment to extend the tax holiday till March 31, 2009 had been incorporated in the supplementary provisions. Hence, STP Units are entitled to the tax holiday till the financial year 2009-2010.
  2. Service tax has been imposed on the 'Information Technology' service with effect from May 16, 2008. 'Information Technology' service is defined as follows:
'Information Technology (IT) Software Service' includes
  1. Development (study, analysis, design and programming) of software.
  2. Adaptation, up-gradation, enhancement, implementation and other similar services in relation to IT software.
  3. Provision of advice and assistance on matters related to IT software, including:
    1. Conducting feasibility studies on the implementation of a system,
    2. Providing specifications for a database design,
    3. Providing guidance and assistance during the start-up phase of a new system,
    4. Providing specifications to secure a database,
    5. Providing advice on proprietary IT software.
    6. Acquiring the right to use,-
    7. IT software for commercial exploitation including right to reproduce, distribute and sell,
    8. software components for the creation of and inclusion in other IT software products,
    9. IT software supplied electronically.
The Finance Ministry's clarification on the introduction of service tax on the Information Technology Software Service runs as follows: "Software consists of carrier medium such as CD, Floppy and coded data. Softwares are categorized as "normal software" and "specific software". Normalised software is mass market product generally available in packaged form off the shelf in retail outlets. Specific software is tailored to the specific requirement of the customer and is known as customized software. Packaged software sold off the shelf, being treated as goods".

In our opinion, this is an inclusive definition which will cover virtually all activities related to the software services sector. As per the definition, 'Information Technology Software Service' includes the right to use IT software, which incidentally, is already covered under the VAT law. Hence, there is very likely to be a conflict between service tax and VAT on the right to use IT software which would include licensing of software products. Almost all of the activities of the software sector will have to fall under the sale logic involving payment of VAT or under the services logic involving payment of service tax.

3. Increase in the excise duty applicable on branded / packaged software from 8% to 12%.
  1. The excise duty on branded / packaged software has been increased from 8% to 12%, with effect from March 1, 2008, vide Notification No. 12/2008. All 'off the-shelf' software packages are considered as 'packaged software' which are considered 'goods' for purposes of levy of excise duty and Value Added Tax. In addition to the excise duty @ 12%, VAT would be applicable @ 4% on sale of branded / packaged software, as per the provisions of the Karnataka Value Added Tax Act, 2003 (a similar VAT rate is applied in respect of most of the other States).
  2. No service tax is applicable in respect of sale of branded / packaged software. Similarly, no VAT or sales tax is applicable in the case of customized software services.
4. Changes related to Fringe Benefit Tax
  1. Apart from the 'meal vouchers' issued by SODEXHO, ACCOR etc. being exempted from FBT, payments by corporates thro' non-transferable pre-paid electronic meal cards usable only at eating joints or outlets, subject to fulfilment of conditions to be prescribed by the Central Board of Direct Taxes would also be exempted from FBT.
  2. THE FBT related provisions are being amended to provide that the following payments shall not be considered for FBT levy, viz.
    1. Payment which fulfils any statutory obligation
    2. Payment which mitigates occupational hazards
    3. Providing first aid facilities
    4. Providing creche facility for the children of employees
    5. Sponsoring a sportsman, being an employee
    6. Organizing sports events for employees
    Given the wide reach of FBT, we would strongly advise our clients to take care of whatever exemptions that have been specified. For instance, it's a common practice for IT companies to take their employees out, for picnics / get-togethers. They are advised to have some sports event (including tug-of-war games, in a lighter vein) based on which they can avail of the aforesaid exemption.
  3. The FBT rate on Festival Celebrations has been reduced from 50% to 20%.
  4. It has been clarified that maintenance of any accommodation in the nature of a guest house other than accommodation used for training purposes, would be exempted from FBT.
  5. Levy of FBT on ESOPs, introduced in the 2007-08 Budget, continues. FBT on other items also continues.
5. Refund of Input Service Tax / Cenvat Credit for Software Exporters
  1. In a major development, the Government has clarified vide Circular No. 868 dated May 9, 2008 that 'exported services' are not to be considered as 'exempted services. This clarification greatly simplifies the procedure involved for software exporters including STPs to claim a refund of the input service tax paid or cenvat credit availed by them
6. Issues related to Income tax & service tax
  • The Income tax returns and Fringe Benefit tax returns would now have to be filed on or before September 30, 2008 in respect of 2007-08, INSTEAD of on or before October 31, 2008. A similar procedure would have to be followed for the coming years, as well.
  • All IT corporates would now need to plan their closure of accounts, audit and the filing of the Income tax returns in a more effective manner.
  • There are no changes in the corporate income tax rates, surcharge rates, education cess rates and TDS rates.
  • Weighted deduction of 125% is now available to payments made to companies engaged in research and development.
  • Banking Cash Transaction Tax (BCTT) is withdrawn.
  • A Parent company is now allowed to set off dividend received from its subsidiary company against the dividend distributed by the parent company, for purposes of payment of Dividend Distribution tax. This is a good move which will eliminate double taxation of the same element of dividends. There is no change in the position that dividends are exempt in the hands of the shareholders.
  • Section 40A(3) of the Income tax Act - disallowance for cash payments is now being modified to cover all transactions within a day to the same party, upto an amount of Rs 20,000/- .
  • Amount of deferred tax and the provision thereof and interest charged under the Income-tax Act will now be added to the net profit to find out the 'book profit' for levy of Minimum Alternate Tax, with retrospective effect from the assessment year 2001-02.
  • Section 35D which provides for deduction of certain specified preliminary expenses for the manufacturing sector has now been extended to the service sector also.
  • TDS certificates in the physical format will continue till March 31, 2010.
  • The initial / threshold exemption limit for service tax payers has been increased from Rs 8 lakhs to Rs 10 lakhs. Consequently, it becomes compulsory for a service provider to obtain registration, if the value of taxable services provided by him exceeds Rs 9 lakhs.
  • The Central Board of Direct Taxes has clarified that no tax would need to be deducted by the tenants on the element of the service tax involved, vis-à-vis the rents paid by the tenants to the landlords, under Section 194I of the Income tax Act, 1961.
  • Software companies which have not obtained a registration certificate from the Service Tax Department are strongly advised to obtain such registration by immediately applying in Form ST-1.
7. Changes in the personal taxation front
  1. Contrary to the dismal outlook for IT corporates vis-`-vis this Budget, there is a lot of good news for employees on the personal taxation front. These are briefly summarized below:
    1. The threshold limit of exemption raised. In the case of all assessees, from Rs. 110,000 to Rs. 150,000. In the case of women assessees, from Rs.145,000 to Rs. 180,000 and in the case of senior citizen, from Rs. 195,000 to Rs. 225,000; The four slabs and rates will be as follows : Up to Rs. 150,000 Nil; Rs.150,001 to Rs. 300,000 10 per cent; Rs. 300,001 to Rs. 500,000 20 per cent; Rs. 500,001and above 30 per cent.
    2. The Senior Citizens Savings Scheme, 2004 andthe Post Office Time Deposit Account added to the basket of saving instruments under Section 80-C.
    3. Additional deduction of Rs. 15,000 under section 80D to a individual who pays medical insurance premium for his/her parent or parents.
    4. The rate of tax on short term capital gains under Section 111A and Section 115AD raised to 15% from 10%.
    5. For the sake of easier understanding, we have compiled a table showing the pre and post Budget income tax liability for individuals.
Comparision of Tax liabilities Pre budget and Post budget For Men Income Slab rate Existing Tax Rate Exisiting Tax Amount Post Budget Tax Rate Revised Tax Net Benefit 0-110000 Nil 0 Nil 0 0 110000-150000 10 4000 Nil 0 4000 150000-250000 20 20000 10 10000 10000 250000-300000 30 15000 10 5000 10000 300000-500000 30 60000 20 40000 20000 500000-above 30 30

For Women Income Slab rate Existing Tax Rate Exisiting Tax Amount Post Budget Tax Rate Revised Tax Net Benefit 0-145000 Nil 0 Nil 0 0 145000-150000 10 500 Nil 0 500 150000-180000 20 6000 Nil 0 6000 180000-250000 20 14000 10 7000 7000 250000-300000 30 15000 10 5000 10000 300000-500000 30 60000 20 40000 20000 500000-above 30 30

8. Notes : Male employees having taxable income of Rs. 3,00,00/- will gain about Rs 24,000/- in taxes, while those having taxable income of Rs. 5,00,00/- get benefit of Rs. 44,000/- Female ass having Income of Rs. 3,00,00/- will gain Rs. 23,500/- in taxes, while those having taxable income of Rs. 5,00,00/- will save Rs. 43,500/- in taxes.

DISCLAIMER : This Report has been prepared based on the proposals contained in the Budget 2008-09 documents and papers. As such, S3 Solutions Pvt Ltd takes no responsibility for any inaccuracy which might have crept in, in this Note. This Note will need to be modified on the basis of the Finance Bill 2008-09, as and when it gets passed by the Parliament.

From India, Mumbai
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