Employees of IT companies operating out of Special Economic Zones (SEZ) may soon be able to work from home permanently.
The Ministry of Commerce and Industry is discussing the issue internally and a decision is likely by month end, senior officials told ET.
The $191 billion IT industry, led by lobby group Nasscom, has been seeking a permanent work from anywhere arrangement for units within the SEZ, from where nearly 60% of IT services are exported.
The government had earlier eased regulations for the industry under the Other Service Provider (OSP) guidelines of the Department of Telecom (DoT).
Units in the SEZs are, however, still battling with uncertainty on this front.
The industry is seeking relaxations and clarity on the SEZ rules and related tax procedures so that it can implement a long-term blended work model with remote working as a key component, especially due to the second Covid-19 wave now on in the country.
“The idea is that the IT units in SEZs should have flexible but stable work from home regime without many compliances. The talks for permanent work from home are in an advanced stage and a decision is likely by the end of this month,” an official in the know of the details said.
The commerce and industry ministry has already done away with the requirement of inspections in case of debonding of IT/ ITeS units in SEZs, under which they can opt for simple payment of duty without inspection, subject to the condition that they produce all relevant import and other documents of goods to establish their identity and to avoid requirement of physical inspection of duty-free assets. This reduces their operational and administrative burden, another official said.
“The SEZs have been directed to allow the units such relaxations so that employees can easily work from home,” the official added.