StartupTalky

Tag: Income Tax Department of India

  • Delhivery Hit with INR 1.36 Crore Tax Penalty by Income Tax Department

    The Delhi Income Tax Department has issued a penalty order of INR 1.32 crore to the logistics startup Delhivery. According to the company’s exchange filing, the Assessing Officer of Central Circle 18, Delhi, issued the penalty notice to it on June 28.

    The ruling relates to specific expenses of INR 3.95 crore incurred by the corporation during the 2015–16 fiscal year, according to the exchange filing. The expenses were not disclosed by the corporation.

    Delhivery has stated that it will challenge the order before the proper authority and refuse to pay the fine. It further stated that the order has no significant effect on the company’s financials or operations.

    Delhivery Under a Strict Scanner of Tax Authorities

    The Directorate General of GST Intelligence, Mumbai, sent Delhivery a show-cause notice earlier last month for INR 49.19 crore. The order dealt with a question of interpretation regarding tax rates.

    Earlier in February 2025, the Directorate of Commercial Taxes of the Government of West Bengal ordered Delhivery to pay INR 5.35 crore in goods and services tax (GST).

    A penalty of INR 53.57 lakh and interest on the overdue amount were also imposed by the order, which was issued on February 26 in accordance with Section 73 of the West Bengal Goods and Services Tax Act, 2017, and Section 20 of the Integrated Goods and Services Tax Act, 2017.

    Delhivery’s regulatory filing states that the tax demand is the result of the Input Tax Credit (ITC) being denied for the fiscal year 2020–21.

    According to the corporation, the disallowance is predicated on claims from dealers whose GSTINs were cancelled retroactively, claims from dealers who failed to file their GSTR-3B forms, and alleged short ITC reversals under Rule 42/43.

    As a result of these conclusions, the tax authorities confirmed the demand for INR 5.35 crore along with an additional INR 53.57 lakh penalty.

    CCI Greenlights Delhivery’s Acquisition of Ecom Express

    Delhivery Limited’s purchase of a minimum of 99.44% equity and preference shares in Ecom Express Limited, on a fully diluted basis, was authorised by the CCI earlier this month.

    In April, Delhivery announced that it had paid INR 1,407 crore to acquire the majority of Ecom Express.

    The publicly traded logistics behemoth Delhivery has expanded into a full-stack business with supply chain management, warehousing, cross-border logistics, and express package and freight services.

    Delhivery, which is well-known for its significant investments in automation and data-driven delivery intelligence, has integrated Ecom Express, a leader in logistics for e-commerce, in an effort to increase last-mile capabilities and consolidate market dominance.

    Despite not being publicly listed, Ecom Express has established a strong foothold in India’s rapidly expanding e-commerce industry thanks to a network that is designed for returns, reverse logistics, and warehousing. One of the biggest integrated logistics systems in the nation is anticipated to be created by the acquisition.

  • Truecaller is Being Investigated by the IT Department for Violations of Transfer Pricing

    On November 7, a renowned news outlet stated in its report that the Income Tax Department of India (IT) had begun an investigation into the spam caller blocking software Truecaller and calling ID due to a suspected violation of the transfer pricing regulation action.

    According to the report, Truecaller’s offices and other locations connected to the app in Gurugram and a few other locations have been raided by IT department officers.

    In India, the app has more than 400 million active users. Truecaller Fraud Insurance is a new service that the app introduced in India with the intention of providing premium customers with extra security in the event that they become victims of fraud.

    Truecaller, a calling ID and spam caller blocking app, teamed up with HDFC Ergo to offer this service. Since these types of frauds are becoming more common, Truecaller stated that the new tool will truly assist consumers to protect themselves with these fake and fraud calls.

    Truecaller’s Response

    The corporation responded by saying that Truecaller is now fully supporting the authorities at its headquarters. This was unexpected, and Truecaller is presently awaiting formal confirmation and word from the tax authorities.

    According to the company’s press statement, Truecaller will fully comply with the appropriate authorities, and this is not an unusual practice. The business added that, other than regular tax audits, Truecaller is not the target of any tax investigations in India. 

    For its intra-group transactions, Truecaller follows the globally recognised arm’s length norm for transfer pricing, as was previously stated. As far as the Swedish and Indian tax authorities are concerned, the goal is to make sure Truecaller pays taxes correctly. According to the release, the policy is regularly examined by an impartial party to make sure it complies with the requirements of both nations’ tax laws.

    To make sure that cross-border transactions between linked firms are carried out at market value and avoid profit shifting to lower-tax jurisdictions, the tax authorities have increased their inspection of transfer pricing legislation. To stop income leaks, the tax probes on international firms that were previously conducted to verify compliance in the tech and digital industries have been expanded.

    With features like caller ID, call blocking, flash messaging, call recording, chat, and voice over the internet, the Stockholm-based startup runs a smartphone application.

    The business maintained that, aside from regular tax audits, its operations are “entirely transparent” and immune to tax investigations in India.

    Rishit Jhunjhunwala Has Been Appointed as the New CEO of Truecaller

    Rishit Jhunjhunwala, the current chief of products, was named Truecaller’s new CEO the day before the raids took place. Jhunjhunwala is the managing director of Truecaller’s India division and has been with the company since 2015. On January 9, 2025, he will assume his new position following Alan Mamedi’s resignation. In a letter, co-founders Alan Mamedi and Nami Zarringhalam announced their decision to leave Truecaller’s operational responsibilities on June 30, 2025.

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