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Can clearance agent opt for presumptive taxation.

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Aegon Stark

10 Points Posted on 03 July 2022

I am engaged in the business of providing logistic service relating to export/import viz. transportation, warehousing, packaging, custom clearance.major area of activity is custom clearance which involves clearing of goods from docks/airports.Client pays me full amount out which I pay duties and transportation charges and remaining income is my income.can i opt for presumptive taxation under 44ad when filing income tax.

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Quick Summary

This discussion examines whether a business providing logistic services, including customs clearance, can opt for presumptive taxation under Section 44AD of the Income Tax Act. While generally possible for service providers, a key condition is that the income must not be in the nature of commission. If the agent receives commission, they cannot avail of the presumptive taxation scheme.