April 12, 2023

Inflation at 5.66% in March 2023

Economy / /

GOVERNMENT OF INDIA MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION NATIONAL STATISTICAL OFFICE   PRESS RELEASE Dated the 12th April 2023 22, Chaitra, Saka 1945 CONSUMER PRICE INDEX NUMBERS ON BASE 2012=100 FOR RURAL, URBAN AND COMBINED FOR THE MONTH OF MARCH 2023 The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) is releasing All India Consumer Price Index (CPI) on Base 2012=100 and corresponding Consumer Food Price Index (CFPI) for Rural (R), Urban (U) and Combined (C) for the month of March 2023 (Provisional) in this press note. CPIs for Sub-Groups and Groups for both All India and all States/UTs are also being released. The price data are collected from selected 1114 urban Markets and 1181 villages covering all States/UTs through personal visits by field staff of Field Operations Division of NSO, MoSPI on a weekly roster. During the month of March 2023, NSO collected prices from 100% villages and 98.5% urban Markets while the Market-wise prices reported therein were 4% for rural and 93.4% for urban. All India Inflation rates (on point to point basis i.e. current month over same month of last year, i.e. March 2023 over March 2022), based on General Indices and CFPIs are given as follows: All India year-on-year inflation rates (%) based on CPI (General) and CFPI: March 2023 over March 2022     Mar. 2023 (Prov.) Feb. 2023 (Final) Mar. 2022 Rural Urban Combd. Rural Urban Combd. Rural Urban Combd.   Inflation CPI (General) 5.51 5.89 5.66 6.72 6.10 6.44 7.66 6.12 6.95 CFPI 4.66 4.82 4.79 6.60 5.09 5.95 8.04 7.04 7.68   Index CPI (General) 178.0 176.3 177.2 177.9 175.6 176.8 168.7 166.5 167.7 CFPI 172.9 178.4 174.9 172.9 177.4 174.4 165.2 170.2 166.9 Notes: Prov. – Provisional, Combd. – Combined     Monthly changes in the General Indices and CFPIs are given below: Monthly changes (%) in All India CPI (General) and CFPI: March 2023 over February 2023   Indices Mar. 2023 (Prov.) Feb. 2023 (Final) Monthly change (%) Rural Urban Combd. Rural Urban Combd. Rural Urban Combd. CPI (General) 178.0 176.3 177.2 177.9 175.6 176.8 0.06 0.40 0.23 CFPI 172.9 178.4 174.9 172.9 177.4 174.4 0.00 0.56 0.29 Note: Figures of March 2023 are provisional.   Next date of release for April 2023 CPI is 12th May 2023 (Friday). For more details please visit the website mospi.gov.in   Price Statistics Division IS/ ISO 9001: 2015 CERTIFIED List of Annex   Annex Title I All-India General, Group and Sub-group level CPI and CFPI numbers for February 2023 (Final) and March 2023 (Provisional) for Rural, Urban and Combined II All-India inflation rates (%) for General, Group and Sub-group level CPI and CFPI numbers for March 2023 (Provisional) for Rural, Urban and Combined III General CPI for States for Rural, Urban and Combined for February 2023 (Final) and March 2023 (Provisional) IV Year-on-year inflation rates (%) of major States for Rural, Urban and Combined for March 2023 (Provisional)  evel CPI and CFPI numbers for February 2023 (Final) and March 2023 (Provisional) for Rural, Urban and Combined (Base: 2012=100)   Group Code   Sub- group Code     Description Rural Urban Combined   Weights Feb. 23 Index (Final) Mar. 23 Index (Prov.)   Weights Feb. 23 Index (Final) Mar. 23 Index (Prov.)   Weights Feb. 23 Index (Final) Mar. 23 Index (Prov.) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)   1.1.01 Cereals and products 12.35 175.3 174.2 6.59 174.8 174.7 9.67 175.1 174.4   1.1.02 Meat and fish 4.38 204.9 205.2 2.73 211.8 212.2 3.61 207.3 207.7   1.1.03 Egg 0.49 182.4 173.9 0.36 184.6 177.2 0.43 183.3 175.2   1.1.04 Milk and products 7.72 175.8 177.0 5.33 176.9 177.9 6.61 176.2 177.3   1.1.05 Oils and fats 4.21 188.9 183.4 2.81 175.6 172.2 3.56 184.0 179.3   1.1.06 Fruits 2.88 161.2 167.2 2.90 166.1 172.1 2.89 163.5 169.5   1.1.07 Vegetables 7.46 138.8 140.9 4.41 172.1 175.8 6.04 150.1 152.7   1.1.08 Pulses and products 2.95 170.1 170.4 1.73 171.0 172.2 2.38 170.4 171.0   1.1.09 Sugar and Confectionery 1.70 119.5 119.1 0.97 122.2 121.9 1.36 120.4 120.0   1.1.10 Spices 3.11 211.8 212.1 1.79 204.8 204.8 2.50 209.5 209.7   1.2.11 Non-alcoholic beverages 1.37 177.3 177.6 1.13 164.3 164.9 1.26 171.9 172.3   1.1.12 Prepared meals, snacks, sweets etc. 5.56 189.2 189.9 5.54 195.7 196.6 5.55 192.2 193.0 1   Food and beverages 54.18 174.7 174.8 36.29 179.8 180.7 45.86 176.6 177.0   2   Pan, tobacco and intoxicants   3.26   197.8   198.3   1.36   202.2   202.7   2.38   199.0   199.5   3.1.01 Clothing 6.32 189.6 190.0 4.72 179.4 180.3 5.58 185.6 186.2   3.1.02 Footwear 1.04 186.9 187.0 0.85 166.2 167.0 0.95 178.3 178.7 3   Clothing and footwear 7.36 189.2 189.6 5.57 177.4 178.2 6.53 184.5 185.1 4   Housing – – – 21.67 173.5 173.5 10.07 173.5 173.5 5   Fuel and light 7.94 183.0 181.6 5.58 180.7 182.8 6.84 182.1 182.1   6.1.01 Household goods and services 3.75 178.0 178.6 3.87 168.8 169.2 3.80 173.7 174.2   6.1.02 Health 6.83 185.6 186.6 4.81 179.9 180.8 5.89 183.4 184.4   6.1.03 Transport and communication 7.60 168.7 169.0 9.73 159.7 159.8 8.59 164.0 164.2   6.1.04 Recreation and amusement 1.37 172.4 172.8 2.04 168.1 168.4 1.68 170.0 170.3   6.1.05 Education 3.46 178.2 178.5 5.62 172.2 172.5 4.46 174.7 175.0   6.1.06 Personal care and effects 4.25 179.7 180.7 3.47 180.1 181.4 3.89 179.9 181.0 6   Miscellaneous 27.26 177.3 177.9 29.53 169.5 170.0 28.32 173.5 174.1 General Index (All Groups) 100.00 177.9 178.0 100.00 175.6 176.3 100.00 176.8 177.2 Consumer Food Price Index (CFPI) 47.25 172.9 172.9 29.62 177.4 178.4 39.06 174.4 174.9 Notes: : Provisional. CFPI : Out of 12 sub-groups contained in ‘Food and Beverages’ group, CFPI is based on ten sub-groups, excluding ‘Non- alcoholic beverages’ and ‘Prepared meals, snacks, sweets etc.’. – : CPI (Rural) for housing is not     Price Statistics Division IS/ ISO 9001: 2015 CERTIFIED All-India

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Several Foreign Cos Get Tax Notices on India Investments

Income Tax / /

Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice  Show cause for AY20 to cos across sectors question source, valuation of investments Indian tax authorities have issued show cause notices to several foreign companies, including some that have been operating in the country through their subsidiaries for a long time, questioning the source and valuation of their investment in the country. The income-tax authorities have in some cases even sought passport and travel details to India for the past four years, date of arrival and departure from India, and the number of days of stay in the country of key personnel. Multinational companies across sectors were served show cause notices under Section 148A in the latter half of March. These notices relate to the assessment year 2019-20. India received $44. 36 billion in foreign direct investment in FY19, the relevant financial year. The Insight portal of the Central Board of Direct Taxes (CBDT) provides information to assessing officers, who then send out notices under Section 148A seeking an explanation. The section deals with the reopening of assessments, if tax authorities have a reason to believe that income chargeable to tax has escaped assessment. The assessee is given a chance to discuss the issue with the assessing officer. No further action is initiated if a satisfactory response is given by the assessee and a reassessment is carried out only in the absence of a response altogether or an unsatisfactory one. Companies have also been asked to furnish tax residency certificates.Thousands of such Section 148A notices have gone out, including to individuals, seeking explanations. Section 148A of the Income-Tax Act, 1961, was introduced by the Finance Act, 2022, which requires assessing officers to conduct an inquiry while providing an opportunity to the taxpayer before issuing a notice under Section 148. This was done to allow taxpayers to explain transactions and thereby avoid unnecessary litigation.    

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Delhi HC Upholds GST on Auto Rides Booked via App

Goods & Service Tax / /

Services of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice  Levy not discriminatory as classification of ecommerce operators was recognised by statute: HC In a setback to app-based cab aggregators like Uber and Ola, the Delhi High Court on Wednesday upheld the central government’s decision to levy GST on autorickshaw rides that are booked through ride-sharing applications by commuters.Holding that the decision to levy GST did not violate any fundamental rights, a division bench comprising Justices Manmohan and Manmeet Pritam Singh Arora said: “Classification as a class of service providers separate and distinct is recognised in the provisions of the (GST) Act. The classification has a rational nexus with the object sought to be achieved. ”While dismissing Uber’s petition challenging the levy of GST, the HC held that the notifications under challenge did not result in discrimination since the classification of ecommerce operators was recognised bythe statute.Uber India had challenged the November 2021 notifications on the grounds that increasing the prices for autorickshaw rides on the app would lead to a significant hit on the market. Uber had argued that the notification was discriminatory as the Centre did not have any plans to charge GST on autorickshaw rides booked through offline methods, with the prices of local auto rides still remaining low. There cannot be any distinction in tax treatment between passenger transport services provided by auto drivers facilitated through mobile platforms and passenger transport services provided by auto drivers offline, it added.

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DPIIT Takes Up Startups Concerns with FinMin

Startups / /

Services of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice  The Department for Promotion of Industry and Internal Trade (DPIIT) has raised, with the finance ministry, issues related to startups’ concerns over the calculation of their fair market valuation, and the Budget proposal to include foreign investors under the ambit of the so-called angel tax that till now applied only to Indian residents.Officials said talks were ongoing with the departments of revenue and economic affairs to address the concerns, as startups raise funds based on their market valuation but that also increases their tax liability. “We are talking to the revenue department and the department of economic affairs. Talks are ongoing,” said an official.Startups are valued at a price higher than the fair market value (FMV) as their investors look at liquidation preferences and other balancing rights.This discussion comes amid declining investment for startups, especially after the collapse of California-based Silicon Valley Bank, which was crucial to the startup ecosystem.As per the latest ‘Tracxn Geo Qu-arterly Report: India Tech Q1 2023’ report, the startup ecosystem in India saw a considerable decline in investment in the first quarter of 2023 compared with the same period in 2018.In the budget 2023-24, the government proposed to include foreign investors under the ambit of the angel tax that was applicable to Indian residents. It will become effective April 1, 2024. Angel tax is levied on unlisted companies when they issue shares at a price that exceeds the FMV. The difference is then taxed at 20% or more.Besides being an additional burden from a regulatory perspective, startups fear that the move will push investors away. Source: Economic Times – 13/04/2023

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