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1. Who can, and how do I go about setting up MT Operations in India?


The following are brief guidelines for individuals / companies interested to set up MT operations in India.

Indian Citizen / Company

An individual and citizen of India can set up MT operations in India through the following:

  • as an Individual / Proprietor
  • as a Partnership / Firm / Trust
  • as a Company registered under the Companies Act, 1956

No prior permission of Government of India is required to set up MT units in India. Moreover, to encourage units in this sector, Government of India has announced many schemes.

  • Export Processing Zones (EPZ) :
    These zones are located at various places including Cochin, Falta (Near Calcutta), Kandla, Chennai, Noida, Santacruz (Mumbai), Vishakhapatnam and Surat. A unit can be set up in these zones subject to availability of space. No import duty, special 10 years income tax holiday are some of the incentives provided. There is no restriction on quantity of domestic sales.

  • 100% Export Oriented Unit (EOU) :
    This is similar to EPZ scheme. But in this scheme, there is no need to be physically located at EPZ. All other incentives are same as provided to EPZ units.

  • Software Technology Park (STP) :
    A very special scheme under Department of electronics. STPs are located at Noida, Navi Mumbai, Pune, Gandhinagar, Hyderabad, Bangalore, Chennai, Bhubaneshwar, Jaipur, Mohali and Thiruvanathapuram. This scheme offers zero import duty on import of all capital goods, special 10 years income tax holiday, availability of infrastructural facilities like high speed data- communication links etc. are some of the incentives available under this scheme.


Overseas Company

A foreign company or individual planning to set up MT business operations in India can do so as under:

A. As a foreign company through a Branch Office.
B. As an Indian company through a Joint Venture or a Wholly Owned Subsidiary.

Foreign Company is one that has been incorporated outside India and conducts business in India. These companies are required to comply with the provisions of Companies Act, 1956.

Branch Office

Foreign companies engaged in manufacturing and trading activities abroad may set up Branch offices in India, with the permission of RBI, to promote possible technical and financial collaborations between the Indian companies and overseas companies. A branch office is not permitted to carry out production activities on its own but is permitted to sub-contract these to Indian manufacturers.

As an Indian Company

A foreign company can commence operations in India through incorporation of a company under the provisions of Indian Companies Act 1956. Foreign equity in such Indian companies can be up to 100% depending upon the business plan of the foreign investor, the prevailing investment policies of the Government and on receipt of requisite approvals.

Joint Venture with an Indian partner

Foreign companies can set up their operations in India by forging strategic alliances with Indian partners. Setting up of operations through Joint Venture may entail the following advantages to a foreign investor:

  • Available financial resources of the Indian partner.
  • Established contacts of the Indian partner that help to smoothen the process of setting up operations.

Foreign investments are approved through two routes as under:

  • Automatic Route :
    Approvals for foreign equity up to 50%, 51% and 74% are given on an automatic basis subject to fulfillment of prescribed parameters. RBI accords automatic approval to all such cases.

  • Government approval :
    Approval in all other cases where the proposed foreign equity exceeds 50%, 51% or 74%.
Wholly Owned subsidiary

The foreign investor has the option of setting up an wholly owned subsidiary, wherein the foreign company owns 100% share of the Indian company. All such cases are subject to prior approval from the FIPB.

 

Consider Market Potential
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Define Regulatory Issues Define Competition Conduct Market Research

 

Consider Entry Strategy Options
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As a Foreign Company As an Indian Company
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Branch Office

I (Joint Venture) (100% Subsidiary)
Obtain Regulatory Approvals Conduct Partner Search Obtain Regulatory
Approvals
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Conduct Negotiations Incorporation of
Company
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Carry out Business Valuation Issue of Shares
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Undertake Due Diligence Registration with
relevant Government
authorities

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2. What business strategies should I observe?


The basic process of Medical Transcription flows as follows: Transcribe and Edit - Delivery (Hospital Specific Format) within a contracted turnaround cycle - Bill Customer.
A successful medical transcription unit is characterized by following strategies:

  • Continuous watch and reduction of variable costs: This is effected through accessing offshore manpower, new technology and improved processes. These costs typically consist of staff costs (transcriptionists), telecommunications and operating various offices.

  • High Margins: Better costs management, outsourcing, large volumes and continuous investments in more productive technologies.

  • Internal Strategies: Enhanced value addition and maximizing productivity through internal assets.

  • Business Differentiation: Ensure constant uptime, minimum turnaround time, quality and costs advantage through efficiency and cost management.

  • Internal training programs: It is important to have in-house training programs to train MTs for new skills and medical terms, checking and ensuring the level of their output and for internal growth.

  • Business proposition for customer should be to offer cost advantage, improved productivity and quick response.

The industry has the potential to spin off a complete healthcare information industry. It may be worthwhile to note that low quality manpower supply base, modest levels of customer satisfaction, and a potential trend to concentrate on insourcing presently affect this industry. Customer support has been found to a more wanting factor than availability of services. Thus, ensuring 24-hour support with expert help desks should help to improve customer satisfaction levels.

The outsourcing to India process will work only if the customer feels comfortable and does not have to put in precious management time to make it work. This means credibility in terms of delivery time and quality. For this, it is essential to have a service centre in the USA. This service centre has to be fitted with adequate hardware, software networking and 800 lines so that it acts as a clearing station between the outsourcing company in the US and the service provider in India.

The customer will deal with this centre and so will the service provider. Outsourcing needs reliable third party provider. Even though the market size is large, it calls for top level contact and coverage to get agreements to transfer these jobs offshore. An aggressive marketing and sales team is a must. Basic raw material is easily available and the technology is relatively stable. However, training is to be imparted to create both the skills required for the particular job as well as cultural issues like language, following rules, delivery on time and quality. Since communication is the key, there has to be network with adequate bandwidth and back-ups.

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3. How will I market my Company’s services?


The best practice for marketing medical transcription services is to approach hospitals / doctors directly. However, in the beginning, entrepreneurs may find it difficult. Moreover, it is also important to build up sufficient experience and learning in the team before taking direct responsibility for execution of a project. Therefore, it is suggested that in the incubation stage, venture promoters may tie up with a larger medical transcription company in the capacity of an affiliate.

These companies such as CBay Systems, HealthScribe or Heartland, not only sub-contract their orders, but also help to develop a venture into a self sustaining affiliate by providing training and advisory services. These services may be offered for a nominal fee. Over a period of time, as the company begins to develop internal competencies, it may start to develop direct relationships with hospitals. This further helps to bypass intermediaries and improve margins.

Companies may also consider opening an office in major markets, such as USA or Europe, to provide business promotion coverage to certain regions / states. Internet can also be used as a useful resource tool for tracking potential business points. Some of the useful web sites are:
Business Resource Center: https://www.morebusiness.com/
Network Centric Outsourcing: https://www.outsourcing-center.com/

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4. What is India’s Advantage?


MT Services are a strategic and imperative fit for India as it offers immense jobs opportunities and ability to earn foreign exchange. A majority of the State Governments in India are offering incentives and infrastructure for setting up these services. Central Government has provided Income Tax exemption to profits from export of these services.

Vocational colleges have started teaching the skills for these services. Moreover, setting up of these services is not capital intensive and is entrepreneur driven. India has emerged as the preferred Global Destination and the hub of MT Services. Amongst others, it offers cost and quality advantages plus much more:

  • A virtual 12-hour time zone difference between India and USA offers cost and time savings.

  • A huge pool of English speaking and computer literate graduate workforce who can continue to cater to the growing demand of professionals for MT Services.

  • With more than 115 ISO 9000 certified and four SEI Level 5 Software Companies, India offers the ultimate quality advantage with relatively less costs.

  • India enjoys very strong brand equity in major markets, thanks to its growing and globally competitive software industry.

  • A special thrust has been given by Department of Telecommunications, Government of India with reduction in prices of High Speed Datacom lease circuits.

  • Thrust by Government of India by providing Income Tax exemption to profits from exports of MT Services.

  • Central and State Governments as well as private sector are setting up state-of-the-art infrastructure for MT Services including IT Habitats

Nasscom has constituted a Vision Group for IT Enabled Services (MT is classified as an IT Enabled service in India). This is a special forum mandated with the task of identifying opportunity segments in the areas of IT Enabled Services. This Nasscom group would also devise segment specific strategies for market development, encouraging entrepreneurship and positioning India as a global hub for IT Enabled Services.

The following table amply projects present status and potential of employment and earnings opportunities
From MT Services -
Medical Transcription/ Medical Coding & Billing         

Year 1998     2008 (Projected)
Workforce Employed 3,800 1,60,000
Rs. (in crores) 140 11,000
(Source: NASSCOM)

Nasscom is following a two pronged strategy for India’s success in I.T. Enabled Services. The first part involves continuous lobby with Government of India for removing procedural and other bottlenecks. Some of the demands include: income tax exemption; single window clearance at Department of Telecommunication; global telecom infrastructure in India; lowering of tariff and more availability of venture capital and marketing funds. In this regard, Nasscom’s lobby was very successful to get income tax exemption to profits derived from most of the I.T. Enabled Services under Section 80 HHE of the Income Tax Act.

The second strategy involves awareness, marketing as well as catalysing quality training of workforce. This is being done by organizing meaningful conferences and workshops and publishing useful publications for enthusiastic entrepreneurs. Nasscom has already mounted a campaign for marketing India’s advantage in this sector. The slogan at Nasscom is `Move Work to India.

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5. What are the Industry trends / potential threats?


One of the biggest fallout of our success in the software industry has been the creation of another huge opportunity i.e. IT enabled services. Though somewhat unheralded, the emergence of this industry is only logical. Our success in software export was based on simple value proposition, "World class services at a less than world-class price".

Clearly, this value proposition applies beyond software, to a variety of back office functions such as medical transcription, call centres, legal databases and insurance claims processing. The same competitive pressures that are leading companies to outsource software development are in operation here. Perhaps even more so as many of these functions, is even lesser core to the company. This market is estimated to be over a whopping-trillion dollar in the next few years.

The good news is that in these areas, manpower is far more abundant than software. And this manpower is available not just in the metros. Most of the infrastructure bottlenecks, that such an industry would have faced five years ago, have already been cleaned up as a result of the focus on software exports. The international recognition that we have received in software is going to make it far easier for companies to sell the concept of outsourcing IT enabled services to India from overseas.

There is a very strong opportunity in medical transcription services. However, the last few years have witnessed consolidation in this industry. This is due to increasing maturity and decreasing differentiation between service providers. However, vendors may attempt to providers value differentiation by developing special features within constant cost bracket.
Industry also perceives intelligent voice recognition software as a potential concern.

However, in spite of the advances in this technology, it has been difficult for the computer to grasp and analyze the human voice and the English language with all its diversity. There will continue to be a need for skilled medical language specialists who expand their education and have the knowledge to identify and edit the inevitable errors created by speech recognition systems, and who have enough understanding of the health record to create an accurate final document. Medical transcriptionists will remain the best qualified to discern the nuances of human speech-indeed, the ultimate speech processors.

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6. How will I ensure security and confidentiality of health records?


Issues on security not only include documents and / or records but the personnel as well. Records entering or leaving your facility should need management approval. Procedures and protocols will have to implemented that are in place throughout the processing phase to assure that all work is completed, and all documentation is tracked and accounted for.

As documentation is received at the processing center, it should be logged in, assigned a production number, counted, put in batches of 20-50, and assigned batch numbers prior to being processed. This endows the service provider with the ability to track, identify, & verify the production process.
It is important to have a two level three (3) time daily backup. All data should be backed up three times per day at your facility, first to a backup server, second to a tape cartridge and stored in a secure location under management control.

The most stringent standards of data and document security must be maintained. All database application software files should be backed up off-site. Fire walls must be in place for the safe and secure transfer of data-both from clients to the service provider and between interim locations. Data must be encrypted prior to transmission. The facility should be designed to comply with the special requirements of clients who require the highest level of security. Institutions can transmit data on dedicated T- 1 lines.

Employees have to be put through security and background checks to insure confidentiality. All employees must sign employment agreements which include: Confidentiality of information, Consent to conduct background investigation, Covenant not to solicit, Acknowledgment of the drug free workplace and Agreement to submit to drug testing as company policy dictates.

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7. How will I implement effective quality assurance in medical transcription?


The key elements of an effective quality assurance program should include:

  • Appropriate work environment and adequate resources are provided and maintained.

  • Medical transcriptionists must have the appropriate education, training, and experience, as well as work under supervision and management.

  • Managers and supervisors must be dedicated to quality assurance and provide an environment that supports quality documentation.

  • Designated equipment is utilized skillfully and efficiently, with proper guidelines and demonstration for use available to transcriptionists and originators of the documentation.

  • Patient demographics and Originator identification are verified.
    Designated formats are followed.

  • English language rules are adopted and used consistently.

  • Current reference materials are made available and are used consistently.

  • Visual proofreading as well as electronic spellchecking and grammar checking are performed.

  • Obvious inconsistencies, discrepancies, and inaccuracies are recognized and appropriately revised, edited, or clarified, without altering the meaning of dictation or changing the originator's style; flagged for review; or brought to the attention of appropriate personnel for action.

  • Reasonable TAT deadlines are met.

  • Patient confidentiality and systems security are protected.

  • Document storage and retrieval guidelines are followed.

  • A mechanism for feedback to the medical transcriptionist is provided.

A Transcription Company today must be able to deliver a service that meets customer requirements, is delivered on time and is technically superior. This is usually achieved by having good professional staff, being customer aware, working with a well defined methodology and using the best available development practices and test tools. Only a company that is committed to quality culture can deliver this.

Currently there are many standards worldwide such as ISO 9000, SEI CMM, SPICE etc. Quality management practices overlooking the production process need to be extensive and prescriptive. Process quality is an essential ingredient and with future reliance on MT, particularly with end-user MT increasing, there is a need to anticipate and plan for the future, improving existing processes to support tomorrow’s businesses, while at the same time assuring levels of quality today.

Quality is increasingly been seen as an "essential" rather than" useful" business tool. Total quality culture as opposed to quality registration is more relevant to the final service delivered. There will be greater focus on product quality in the widest sense, as complement to process quality. The emphasis must be on total quality management, with certification being an important milestone.

Total Quality management, is a management philosophy and a way of conducting business which emphasizes more sophisticated techniques of continual improvement. The requirement of ISO 9000 stop well short of the cultural environment TQM is seeking to establish.

Indian companies are not only increasingly adapting to the international quality standards but are taking leadership position. It is the policy of Government of India to encourage manufacturers and exporters to attain internationally accepted standards of quality for their products and services. According to the Export-Import Policy, manufacturers who have acquired quality status of ISO 9000 (Series), SEI CMM Level 2 and above or equivalent certification are eligible for the grant of incentive in the form of Special Import Licenses. The entitlement is calculated at the rate of 5% of the F.O.B. value, of exports of products and services made with the above said quality certification during the preceding year.

In India, quality certification is provided by BIS, STQC and many private agencies. Indian companies also use the services of International agencies like BVQI, KPMG, RWTUV etc. to get quality certification.

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8. What are the Important Government Policy Notifications and Incentives offered for setting up MT Operations in India?

We are enlisting here, some of the fiscal and non-fiscal incentives provided by the Government of India to I.T. Enabled Industry.

(A) Customs (Import Duty) Related Issues

  • Zero Import Duty on Computer Software - Customs Notification No.20/99 dated 28 February 1999.There is NIL customs duty on import of I.T. Software into India. Further, there is no applicability of Special Additional Customs duty (SAD) on I.T. Software. Also, since there is no duty on "I.T. Software", there is no applicability of surcharge. For this purpose, I.T. Software has been defined as under: "Information Technology Software means any representation of instructions, data, sound or image, including source code and object code, recorded in a machine readable form and capable of being manipulated or providing inter-activity to a user by means of an automatic data processing machine."

  • Zero Import Duty on Computer Software License - Department of Revenue, Ministry of Finance, Customs Notification No.46/98 dated 16 July 1998. Exim Policy 1998, incorporated a new entry for "License to Use" of computer software as "all documents of title for use of software issued by software company" under the ITC HS Classification No. 4907 00.20. "Licenses" of computer software can now imported separately (if desired with or without the software on media) without any import license from DGFT.

  • Books, magazines and periodicals on CD-ROM are exempt from Import Duty. Customs Notification No. 70/98 dated 25 September 1998. CD-ROMs containing books of educational nature, journals, periodicals or newspapers are exempt from import duty or SAD

  • Donation of computers and peripherals from EOU/EPZ/STP/EHTP at zero duty. Customs Notification No.47/98 dated 16 July 1998. Units in EOU/EPZ/STP/EHTP can donate (at zero import duty) computers and peripherals after two years of import and use to recognized non-commercial educational institutions, registered charitable hospitals, public libraries, public funded research & development establishments, organizations of Government of India, or Government of State or Union Territory.

  • Duty is exempted on import of second hand computers and peripherals received by schools as donation from a donor outside India. Customs Notification No.18/99 dated 11 February 1999.

(B) Income Tax Related Issues

  • Profits derived from export of software (including some of IT Enabled services) are exempt from Income Tax under Section 80HHE of the Income Tax Act. Accordingly, computer software and software developed through on-site, off-shore and physical exports are exempted subject to various provisions contained in Section 80HHE of the Income Tax Act. The definition of "Computer Software" in Section 80 HHE of the Income Tax Act, was further amended during 1998 enlarging its scope. According to this section of Income Tax Act, "Computer Software" means any computer program recorded on any disc, tape, perforated media or other information storage device and includes any such program or any customized electronic data which is transmitted from India to a place outside India by any means." I.T. enabled services like data entry, revenue accounting, back office operations, medical transcription etc. may now claim 100% tax exemption under Section 80 HHE of the Income Tax Act.

  • Benefits under Section 80 HHE of Income Tax Act is also available to sub-contractors. (Finance Bill (No.2) 1998
  • A ten-year income tax holiday is available under Section 10A/10B of Income Tax Act. Accordingly, units in100% Export Oriented Units located in Export Processing Zone (EPZ), Software Technology Park (STP) or Electronic Hardware Technology Park (EHTP) are exempted from Income Tax for 10 years. This exemption is valid for specified activities and subject to provisions in Section 10A and 10B of the Income Tax Act.

  • Depreciation on computers at 60%. Central Board of Direct Taxes, Department of Revenue, Ministry of Finance Notification dated 4 September 1998. Government of India has raised the maximum depreciation for computers to 60%. Therefore, as per the written down value method, 84% of cost of the computers can be depreciated in first 2 years.

  • "On-site" services rendered by units in EOU / EPZ / STP are covered under the tax holiday scheme provided by Section 10A/10B. Ministry of Finance Circular 694 F.No.149/68194-TPL dated 23 November 1994.

(C) Export- Import (Exim) Policy Related Issues

  • Exim Policy 1999 allows import of all kinds of computers in India without obtaining any licenses. Prior to 1999, this was not allowed.

  • Definition of "Services" to include all trade-able services covered under General Agreement on Trade in Services (GATS). Exim Policy 1999.

"Services" to include:

  • Consultancy services related to installation of computer software

  • Software implementation services

  • Data processing services

  • Database services

  • Others

"Service Provider" defined as providing:

  • Supply of a service from India to any other country

  • Supply of a service from India to the service consumer of any other country in India

  • Supply of a service from India through commercial or physical presence in the territory of any other country.

  • Capital goods can be imported free of cost or on loan from clients for approved activity by EOUs and units operating in EPZ/STP/EHTP. Exim Policy 1997-2002 announced on 1st April 1999.

  • Zero Duty EPCG Scheme for software sector (minimum threshold of capital goods of Rs.10 lakhs). Exim Policy 1998. The Exim Policy allows for a special category of zero duty Export Promotion Capital Goods (EPCG) scheme for computer software units. Thus, software units set up anywhere in India can import all their requirement of capital goods at zero customs duty subject to signing export obligation of six times the C.I.F. value of the imports to be made in a period of six years on F.O.B. basis; whereas on N.F.E. basis, it is 5 times the C.I.F. value of capital goods imported. Here, one of the other requirements is that minimum value of import has to be Rs.10 lakhs.

  • Software exporters in DTA and units in EOU / EPZ / STP / EHTP are entitled to Special Import License (SIL). Exim Policy 1999. Special Import License (SIL) is a special provision under the Exim Policy of the Government whereby an incentive is offered to exporters for meeting certain export obligations. Under this scheme, exporters qualifying the conditions are offered Special Import Licenses (SIL) as a percentage of exports (based on N.F.E or F.O.B. basis). SIL can be used for import of some of the items placed under "Restricted" list by the Government. A very important point to note is that SIL are freely transferable licenses and can be sold or purchased in the market at a premium.

  • Offshore product development and on-site consultancy services by a software company with ISO 9000 and SEI CMM Level II and above certification are entitled to additional Special Import License. Exim Policy 1997-2002 announced on 13 April 1998. The SIL entitlements for exporters holding ISO 9000 Series or IS / ISO 9000 (Series) or SEI Level II and above certification is at 5% of the F.O.B.value of the goods and services. This is applicable to on-site, offshore as well as product/package development.

  • DTA Sales by units in EOU / EPZ / STP / EHTP units enhanced to 50% of F.O.B. value of total revenues of previous year. Exim Policy 1999

  • Duty free imports of capital goods on loan by units located in EOU / EPZ / STP / EHTP units. Exim Policy 1999. Units located in EOU / EPZ/ EHTP /STP are permitted to import goods, including capital goods, free of cost or on loan from their clients, subject to various stipulations of re-export.

  • Import of second hand capital goods by units located in EOU / EPZ / STP / EHTP allowed. Exim Policy 1999.

  • Units located in EOU / EPZ / STP / EHTP may obtain RCMC Certificate from Development Commissioner or Administrative Authority. Exim Policy 1997.

(D) RBI Related Issues

  • SOFTEX Form for Computer Software Exports made much simpler. RBI Circular AD (MA Series) No.1 dated 8 January 1999. It must be noted that SOFTEX form needs to be filled by all non-physical exporters of software and services.

  • ADR/GDR Linked option for employees of software companies in India. RBI Circular AD (MA Series) No.25 dated 7 August 1998. RBI has permitted Indian software companies to offer ADR / GDR Linked Stock Option Scheme to their non-resident as well as resident permanent employees (including Indian and overseas working Directors). By excersing the option, each resident employee will be permitted to remit up to US$ 50,000 in a block of 5 years to ADRs / GDRs.

  • Import of software up through Internet is permitted. RBI Circular AD (MA Series) No.51 dated 15th December 1997. RBI permits remittance towards import of software through Datacom Channels / Internet subject to production of documentary evidence in support of the remittance e.g. invoice of the foreign supplier, user’s license etc.

  • Reproduction of software in India. RBI Circular AD (MA Series) No.4 dated 10 March 1993. An Indian company can sign an agreement with overseas copyright holder that allows the Indian Company to reproduce software in India. The payment of royalty would be on the basis of Indian Published Price. Remittance of royalty upto 30% of the Indian Published Price in respect of legally duplicated/ reproduced in India to overseas copyright holder is permitted without reference to RBI. Where the royalty exceeds 30% of Indian Published Price, the applicant is required to obtain specific approval from Department of Electronics, Government of India.

  • Export of computer software services, repatriation of income. RBI Circular AD (MA Series) No.19 dated 8 September 1995. Individuals, firms, and companies executing service contracts in "computer software" abroad are required to repatriate to India, income equivalent to at least 30% of the contract value. They may utilize income up to 70% of contract value for meeting contract-related expenses abroad.

  • Remittances towards ISO certification, remittance towards advertisement abroad, import through courier. RBI Circular AD (MA Series) No.46 dated 10 November 1997. RBI permits, without limit, remittance towards fee payable to accredited agency abroad for ISO certification.

  • Indian direct investment in Joint Ventures (JV) / Wholly Owned Subsidiaries (WOS) abroad. RBI Circular AD (MA Series) No.35 dated 28 August 1997, Ministry of Commerce Notification F.No.4/1/93-EP (01) dated 26 March 1997. RBI and Ministry of Commerce have outlined the conditions and procedures for making remittance out of EEFC account towards participation by Indian companies in a JV/WOS overseas under normal route, fast track window and in respect of large investments.

  • Use of International Credit Cards for import of software etc. RBI Circular AD (MA Series) No.27 dated 7 August 1998. RBI permits use of International Credit Crad (ICC) for import of software through Internet (upto US$ 15,000) in advance even before the software is downloaded, payment of services rendered through Internet (e.g.training or education of scientific / technical nature availed through Internet), and software engineers going abroad on assignment

(E) Excise Rate Related Issues

  • Computer software attracts "nil" excise rates (duty).

  • Excise duty is exempted on goods purchased from the Domestic Tariff Area (DTA) by units in 100% Export Oriented Units (EOUs), Export Promotion Zone (EPZs), Software Technology Parks (STP), Electronic Hardware Technology Parks (EHTP). Ministry of Finance Notification No.1/95 dated 4 January 1995.

  • No Service Tax on Computer Software Services - Ministry of Finance Notification No. 4/99 -Service Tax dated 28 February 1999. As per the above notification, taxable service provided to any person by a consulting engineer in relation to computer software development is exempt from the purview of Service Tax.

(F) Indian Copyright Act, 1957 (and as amended in 1994/95)

  • "Computer Program" has been included in "Literary Works". The definition reads as follows:

  • "Literary Work" includes computer programs, tables and compilations including computer databases.

  • "Computer Program" means a set of instructions expressed in words, codes, and schemes or in any other form, including a machine readable medium, capable of causing a computer to perform a particular task or achieve a particular result.

  • "Author" means in relation to any literary, dramatic, musical or artistic work that is computer generated, the person who causes the work to be created.

  • "Computer includes any electronic or similar device having information processing capabilities".

  • Strict punishment for Copyright infringements per the provision in Indian Copyright Act, 1957 and as amended in 1994 / 95, any person who knowingly makes use on a computer of an infringing copy of computer program; shall be punishable with imprisonment for a term which shall not be less than seven days but which may exceed to three years, and with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees.

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9. Are there any organizations for MTs?


On-line MTs are researching and networking through e-mail, newsletters, state boards, forums and web sites without any formal organization.

  • AAMT, The American Association for Medical Transcription, https://www.aamt.org/, was founded in 1978. AAMT, P.O. Box 576187, Modesto, CA 95357-6187; 800, 982-2182. Fax: 209, 551-9317. Members receive the bimonthly Journal of the Association for American Medical Transcription; access to AAMT's professional staff; discounts on products and services; educational conferences; the names of local AAMT Chapter Presidents; an examination to become a Certified Medical Transcriptionist; and opportunities to serve in local and national leadership.

  • MTIA, Medical Transcription Industry Alliance, for MT Services: https://www.mtia.com, Molly Malone, 800-543-MTIA, Conference in April, Interview 11/98.

  • American Health Information Management Association, https://www.ahima.org/   919 N. Michigan Ave., Suite 1400, Chicago, IL 60611, 312, 787-3672, AHIMA

  • The Healthcare Information and Management Systems Society, HIMSS, https://www.himss.org/about/allaboutus.html, 230 East Ohio, Suite 500, Chicago, IL 60611-3269, 312/664-HIMS, Fax 312/664-6143, HIMSS

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