Database

In Nigeria, an additional 2% VAT is applied to data services on top of the standard rate of 5%.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) claims that different layers of government impose targeted and sometimes very high taxes on telecom operators in Nigeria which weigh down their operations.

According to India's de minimis rule, samples and gifts not exceeding 103 SDR / 10000 INR / USD 150 in value are exempted from taxes and duties collected by customs.

In 2011, the Reserve Bank of India restricted export-related payments for goods and services through online payment gateways. PayPal had to limit payments for export related payments above 500 USD. In 2014, the bank also imposed a requirement for online transactions by credit cards for the purchase of goods and services within India. They now have to be done within the country and be transacted in the local currency.

Foreign companies (including those relating to B2B, B2C ecommerce, data interchange and other digital supply transactions, web based marketing, database services, online services such as telemarketing, telecommuting, telemedicine, education and information research and all related data communication services) even when not incorporated in India should register in India according to section 2(42) of the new Companies Act of 2013 when they are engaged in business in the country.

India's policy on foreign investment permits FDI up to 100% in e-commerce activities, but the policy applies only to companies engaged in B2B e-commerce. B2C retail trading, in any form by means of e-commerce, is not permissible for companies with FDI and engaged in the activity of single brand retail trading or multi-brand retail trading. Exceptions were introduced in 2015 for single brand retailers that meet certain conditions, including the operation of physical stores in India. This narrow exception limits the ability of the majority of potential B2C electronic commerce foreign investors to access the Indian market. Additionally, in March 2016, the Indian government clarified that B2B e-commerce must not have more than one vendor account for more than 25% of sales, and must not indirectly or directly influence the sale price of goods sold.

India’s encryption regulations require firms to use a 40-bit or lower standard encryption to secure digitally transmitted information, while most firms use much stronger standards, ranging from 128-bit to 256-bit. To use more sophisticated (and therefore more secure) cryptography, firms must procure a license. Firms also report that encryption standards differ from one regulatory agency to another.

The Indian government is reported to block purchases of telecoms equipment from Chinese vendors on national security grounds. The Department of Telecommunications amended its license conditions for mobile service providers, requiring them to submit all plans for procurement of telecoms equipment from foreign vendors for screening and “security clearance” purposes. Although the amendment did not single out China, it is reported that, in practice, security agencies have been blocking applications involving Chinese vendors.

The Preferential Market Access (PMA) Policy provides that domestically manufactured equipment receives preferences in government procurement and in some types of private sector procurement. The underlying objectives are India’s goals to expand its domestic manufacturing capacity and to protect the security of its telecommunications networks. India revised the PMA in December 2013, but the revised policy continues to require that domestically manufactured goods constitute a certain percentage of the electronic products procured by government entities.

More information on the measure is available under the 'Public Procurement' chapter.

Since 2011, the rules on security clearance for telecom equipment require that Telecom Service Providers (TSP), before buying any equipment/software, have to apply to the Indian Department of Telecommunications for prior security clearance.

Only resident trained Indian nationals can be employed as executives responsible for certain security checks. There is also a possibility of extensive inspections of hardware, software, design, development and manufacturing facilities as well as supply chains that might jeopardize intellectual property rights. High fines are imposed in case of non-compliance.

Additionally, since April 2018, India's Telegraph (Amendment) Rules require onerous in-country security testing on all telecom network equipment and products. Previously, such products could be tested and certified in laboratories globally, or at in-house laboratories of the manufacturers (self-certification). Mandatory testing and certification by Indian laboratories triggers additional cost and unnecessary delays for companies, especially given that the availability of suitable laboratories in India remains unclear. Furthermore, there are concerns on India's compulsory security certification scheme (CRS).

In India, there is a mandatory testing procedure by Indian laboratories for conformity to Indian standards. India does not accept foreign test reports issued by labs approved under the internationally-supported IECEE CB Scheme. This results in duplicative in-country certification of the electronics devices that online retailers offer for sale.

15 product categories of electronic and IT products (including laptops, tablets, printers, scanners and wireless keyboards) are mandatorily required to obtain standard compliant certificates before being sold in India. The manufacturers have to send the products to the accredited laboratories that conduct the tests and send the report to the Bureau of Indian Standards (BIS) which issues the certificates.

Export of dual-use items and technologies under India’s Foreign Trade Policy is either prohibited or is permitted under a license. The list of dual-use items also includes electronics, computers and information technology, including information security.

Currently, there are no local content requirements for the commercial market, but in 2012 the EU reported the implementation of preferential procurement policies for domestically manufactured electronic goods and telecom products applicable to procurement schemes of private purchasing entities (e.g. telecom services operators).

India's Compulsory Registration Scheme mandates that 30 ICT products must undergo registration and labelling prior to being launched in the market. At the same time, an obligation was introduced to self-declare registration information (through screen-printing/embossing/engraving on the product or the packaging material).