Negotiating the tax maze in the logistic sector

There is uncertainty over what constitutes gross receipt/ turnover, particularly with reference to payment of custom duty, service tax and reimbursement of cost. The unorganised logistic sector comprises players of all sizes and a range of business entities such as limited liability partnerships (LLP), individuals, companies, partnership and so on. In a supply chain, the movement of goods from place of origin to end-customer requires synchronisation and coordination between the various intermediary players. The involvement of numerous players and activities creates numerous tax issues. Let us look at some of the direct tax aspects relating to the logistic sector. Logistic players not covered by presumptive taxation regime are governed by the normal taxation provisions of the Income Tax Act.

Source : The Hindu Businessline