Business
Trump tariffs on India’s software exports? Why IT sector is worried – double taxation, visa tightening may deal a blow – The Times of India
India’s IT sector is worried about the possible imposition of tariffs on software exports to the US by the Donald Trump administration. The IT sector is already experiencing challenges due to worldwide economic uncertainties and the increasing adoption of AI-based automation, according to industry specialists.The US government’s potential consideration of extending tariffs to software exports has created significant concern within India’s information technology industry, as this could severely impact their operations in their main market.
Trump tariff fears: Why is Indian IT sector worried?
The implementation of tariffs on services exports by the US administration could result in dual taxation, as Indian software companies already contribute substantial tax payments in the United States, according to an ET report.Additional restrictions on visa regulations might lead to increased operational costs due to necessary local recruitment in the US or neighbouring regions.
Tech in trouble?
The Indian technology services outsourcing sector, valued at $283 billion and including companies such as Tata Consultancy Services, Infosys, HCLTech and Wipro, derives over 60% of its earnings from the United States, whilst maintaining its primary workforce in India.However, the US administration has not yet formally announced or indicated any such intentions. Concerns arose after Peter Navarro, the US President’s senior advisor for trade, shared a social media post on X suggesting the application of tariffs on all outsourcing and foreign remote workers.A US conservative commentator Jack Posobiec posted: “Countries must pay for the privilege of providing services remotely to the US the same way as goods. Apply across industries, levelled as necessary per country.”Such implementation would affect all technology service recipients who utilise services from India and similar nations.
Will Trump impose tariffs on IT?
Phil Fersht, CEO and chief analyst at HFS group, suggests that discussions about tariffs on India’s outsourcing sector represent more political messaging than actual policy intentions. Nevertheless, any outsourcing penalties would generate immediate uncertainty, increase operational costs and affect profit margins during an already challenging demand period, the ET report said.“Imposing duties on digital labour flows is far more complex than taxing goods crossing borders. The US depends heavily on India’s IT and engineering talent, whether onsite through H-1B visas or offshore through remote delivery, to keep its own technology economy competitive,” Fersht said.“In addition, several tech billionaire leaders exert significant influence over the Trump administration, and many of them are strongly pro-India because their global businesses depend heavily on Indian engineering talent, delivery capability and market access.”Yugal Joshi, partner at US-based technology consultancy and analyst firm Everest Group, was quoted as saying: “These companies pay significant taxes in the US and therefore, the tariff will be double taxation… It will further harm growth of India-based service providers and even GCCs, if they are tariffed too.”
Nepal has lifted a social media ban, which sparked protests and led to clashes with police that left at least 19 people dead and injured more than 100 others.
In the weeks before the ban, a “nepo kid” campaign, spotlighting the lavish lifestyles of politicians’ children and allegations of corruption, had taken off on social media.
When the government moved to ban 26 social media platforms, including Facebook and YouTube, protests erupted with thousands of young people storming parliament in the capital Kathmandu on Monday. Several districts are now under a curfew.
A government minister said they lifted the ban after an emergency meeting late on Monday night to “address the demands of Gen Z”.
Last week, Nepal’s government ordered authorities to block 26 social media platforms for not complying with a deadline to register with Nepal’s ministry of communication and information technology.
Platforms such as Instagram and Facebook have millions of users in Nepal, who rely on them for entertainment, news and business.
But the government had justified its ban, implemented last week, in the name of tackling fake news, hate speech and online fraud.
Young people who took to the streets on Monday said they were also protesting against what they saw as the authoritarian attitude of the government. Many held placards with slogans including “enough is enough” and “end to corruption”.
Some protesters hurled stones at Prime Minister KP Sharma Oli’s house in his hometown Damak.
One protester, Sabana Budathoki had earlier told the BBC that the social media ban was “just the reason” they gathered.
“Rather than [the] social media ban, I think everyone’s focus is on corruption,” she explained, adding: “We want our country back. We came to stop corruption.”
ReutersOn Monday, police in Kathmandu had fired water cannons, batons and rubber bullets to disperse the protesters.
Prime Minister Oli said he was “deeply saddened” by the violence and casualty toll, and blamed the day’s events on “infiltration by various vested interest groups”.
The government would set up a panel to investigate the protests, he said, adding that it would also offer financial “relief” to the families of those who died and free treatment to those injured.
Home Minister Ramesh Lekhak submitted his resignation on Monday evening following intense criticism over his administration’s use of force during the protests.
Business
New UPI Rules From September 15: Your Transaction Limits Increased To Rs 5 Lakh For THESE Key Categories –Check Full List
New Delhi: National Payments Corporation of India (NPCI), the Umbrella Organisation that facilitates UPI Payments, has issued a latest circular announcing a hike in transaction limit for specific categories in UPI.
NPCI has said that Member, Apps and PSPs must ensure the compliance with the same by 15th September 2025.
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On 24 August 2024, NPCI increased the per transaction limits for entities under categories aligned to Tax Payments to 5 lakh. “With UPI emerging as a preferred payment method, there are requirements from the market on extending higher per transaction limits for additional categories of transactions in UPI.
In view of the above the per transaction limits for the mentioned categories are enhanced accordingly along with additional guidelines, said NPCI.
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The enhanced limits shall be applicable for merchants which are categorised as ‘Verified Merchant’. Acquiring member banks are required to ensure that such limit shall be provided to the merchants which are compliant to the NPCI UPI guidelines.
UPI Transaction Limits Increased To Rs 5 Lakh From 15 September– Full List Of Categories
| 1 | Capital Market | ₹ 5 Lakh | ₹ 10 Lakh |
|---|---|---|---|
| 2 | Insurance | 5 Lakh | 10 Lakh |
| 3 | Government e-Market Place (EMD Payments) | 5 Lakh | 10 Lakh |
| 4 | Travel | 5 Lakh | ₹10 Lakh |
| 5 | Credit Card Bill Payments | 5 Lakh | 6 Lakh |
| 6 | Collections | 5 Lakh | 10 Lakh |
| 7 | Business/Merchant (Including Pre-Approved Payments) | 5 Lakh | NA |
| 8 | Jewellery | ₹ 2 Lakh | 6 Lakh |
| 10 | FX Retail use case with BBPS Platform | ₹ 5 Lakh | 5 Lakh |
| 11 | Digital Account Opening for Term Deposits | 5 Lakh | 5 Lakh |
| 12 | Digital Account Opening – Initial Funding | 2 Lakh | 2 Lakh |
Member banks may continue to be provided the discretion to set their internal limits based on their internal policy, within the overall ceilings prescribed by NPCI. The per transaction limit for P2P shall continue as per the extant guidelines.
The chair of Ferrari and Stellantis has agreed to do one year of community service and jointly pay millions of euros to settle a dispute over inheritance tax in Italy.
John Elkann and his siblings Lapo and Ginerva will pay €183m (£159m) to Italian tax authorities, Italian prosecutors said, according to multiple media reports.
Mr Elkann’s lawyer said the agreement did not include an admission of liability from the Ferrari chair and his siblings.
He said the prosecutors’ decisions were an opportunity to bring “this painful affair to a swift and definitive close”.
Mr Elkann, a member of one of the most powerful families in Italy, is the grandson of Gianni Agnelli, the former boss of Fiat.
The tax dispute relates to the estate of Mr Elkann’s grandmother, Marella Caracciolo, who died in 2019.
Mr Elkann will need to suggest where he could do his community service, which Reuters reported could include helping at a centre for the elderly or a centre helping people with drug addiction.
Paolo Siniscalchi, the Elkanns’ attorney, said in a statement to the BBC: “John Elkann’s request for probation must be viewed in this context and does not entail, just as the settlement with the tax authorities does not, any admission of responsibility.
“If this request is granted, the proceedings against him will be suspended, and upon the successful completion of the probationary period, will conclude with a ruling extinguishing all the charges for which John Elkann is currently under investigation.
“This outcome would mirror that of his siblings Ginevra and Lapo, for whom dismissal of charges has been requested.”
Prosecutors had alleged the Elkann siblings failed to declare roughly €1bn in assets and €248.5m in income, on the basis their grandmother was a Swiss resident.
Prosecutors on Monday accepted the agreement to pay millions, and have asked the judge to drop a criminal case against Mr Elkann’s brother and sister, which was dismissed.
The case stems from a wider dispute between the Elkann siblings and their mother, Margherita Agnelli over the estate of Gianni Agnelli. A civil case is ongoing.
Mr Agnelli died more than 20 years ago after building Fiat up from a small car manufacturer into a major conglomerate.
Ms Agnelli, who inherited €1.2bn euros, has been fighting to overturn agreements she signed in 2004 after her father’s death in an attempt to ensure that money goes to her five children from a second marriage and not to her three eldest.
Ms Agnelli’s lawyers said in a statement that they welcomed the outcome of these tax and criminal proceedings.
Mr Elkann is the oldest of Ms Agnelli’s children. He has been chair of Stellantis since 2021, and became chair of Ferrari in 2018, according to Stellantis.
He first joined Fiat’s board in 1997 and was previously the company’s chair.
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